Schwab Network Lee: Tariffs "Unfairly" Blamed, Long-Term Bull Case for Tariffs
Apr 3, 2025
William Lee, Chief Economist at the Milken Institute, navigates the controversial terrain of tariffs, challenging their negative perception after a market downturn. He likens tariffs to 'rat poison,' arguing they are misunderstood. Lee believes President Trump’s focus on dismantling trade barriers will eventually foster new economic opportunities. He emphasizes that a cooperative approach to trade can promote fair competition, while strategic reductions in regulations will attract foreign investment, paving the way for sustained economic growth.
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Rat Poison Analogy
- William Lee uses a "rat poison" analogy to explain Trump's tariff strategy.
- He compares tariffs to Coumadin, a blood thinner derived from rat poison, used in controlled doses.
Misplaced Focus
- Lee argues that the market's focus on tariffs is misplaced.
- The real issue is Trump's use of political capital, potentially hindering other key economic policies.
Non-Tariff Barriers
- Trump's tariff strategy aims to address non-tariff barriers to trade.
- These barriers, like regulations, pose significant obstacles for American products sold abroad.