Trumponomics The Unintended Consequences of Trump’s Tariff Strategy
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Aug 6, 2025 
Shawn Donnan, a senior correspondent for Bloomberg News, and Anna Wong, the Chief US economist at Bloomberg Economics and former Fed staffer, delve into the complex repercussions of Trump's tariff policies. They discuss how tariffs influence trade dynamics globally, including the depreciation of the dollar and adverse job statistics. The conversation highlights real-world impacts, such as on Mexican tomato growers, and critiques the government's selective exclusions that distort markets. Finally, they explore tariffs as a potential long-term solution for the U.S. economy.
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US Tariffs at Century Highs
- The US has significantly increased tariffs, averaging around 15% from 2-3% a year ago.
- These are the highest tariffs in nearly 100 years, comparable to the 1930 Smoot-Hawley tariffs.
Unexpected Dollar Depreciation Effects
- Contrary to models, the US dollar has depreciated instead of appreciating, easing global financial conditions.
- China's currency stability amid a weaker dollar has made it more competitive globally.
Tomato Grower's Tariff Struggles
- NatureSweet, a major North American tomato grower, faces $1 million weekly costs from Mexican tariffs and tariffs on essential inputs.
- Tariffs on imported technology and materials have forced them to pause expansion plans in the US.