Bloomberg Talks Cornell University Professor Eswar Prasad Talks Tariffs
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Jan 2, 2025 
Eswar Prasad, a Cornell University trade policy professor and Brookings Institution senior fellow, dives into the effects of Trump's tariffs on global trade dynamics. He discusses potential trade wars and the implications for North America, including GDP and inflation shifts. The conversation also covers the complex balance countries must strike between the U.S. and China, addressing supply chain adjustments and geopolitical consequences of economic fragmentation. Prasad's insights illuminate the intricate dance of modern trade relationships.
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Trade War Context
- Trump's tariff threats are likely real, putting other countries in a tough spot.
- The U.S. economy's strength compared to struggling global economies gives it leverage.
Tariff Downsides
- Tariffs can backfire, hurting U.S. consumers with increased prices.
- Global trade disruptions are a bigger worry than individual country impacts.
Balancing Act
- Many countries struggle to balance relations with both the U.S. and China.
- Shifting supply chains from China is difficult, creating opportunities and challenges.