WSJ Opinion: Potomac Watch
Trade Historian Douglas Irwin on Trump's Unprecedented Tariff Shock
Apr 14, 2025
Douglas Irwin, a Dartmouth economist and trade historian, discusses the unprecedented nature of Trump’s tariffs and their far-reaching impacts. He highlights how tariffs surged from 2.4% to 24% and the potential slowdown in GDP growth. The conversation dives into the challenges facing U.S. manufacturing and the de-industrialization dilemma. Irwin also explores the complex relationship with China and the necessity of strategic alliances with countries like Japan and South Korea, advocating for targeted trade strategies over broad tariffs.
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Quick takeaways
- Trump's unprecedented tariffs rapidly raise the U.S. average rate from 2.4% to 24%, drastically altering trade dynamics and economic stability.
- Strategic tariffs against China highlight the complexities of U.S.-China trade relations and suggest a need for targeted rather than broad policies.
Deep dives
The Unprecedented Nature of Trump's Tariffs
Donald Trump's imposition of tariffs marks a significant departure from historical trade policy in the U.S. While the country has traditionally had high tariffs, they were often gradual and built upon existing levels. Trump's approach, which rapidly raises the average tariff to approximately 24% from a historically low 2.4%, is unprecedented in its magnitude and speed. This drastic increase affects a wide range of imports, altering the landscape of U.S. trade relations and the economy as a whole.
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