Peter St Onge Podcast Ep 116 Weekly Roundup: The Trade Wars Begin
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Apr 14, 2025 Dive into the rising trade wars as tariffs take a toll on stock markets. Explore the historical impact of tariffs and how they shape economic behavior. Discover the Triffin Dilemma and its implications for the U.S. dollar's reserve status. Unpack the balance between trade deficits and national strategy, while considering global responses that could redefine trade agreements. Understand the larger economic narrative behind these policies and their potential consequences for American households.
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Tariff Impact
- Trump's tariffs target nearly every country except for a few in the Pacific and the Vatican.
- Stock markets, representing existing globalized companies, fell 4,000 points due to tariffs.
Tariff Rates
- Most countries received a 10% tariff, while Europe received 20% and the UK 10%.
- Canada and Mexico remained at 25%, but many of their exports are exempt under USMCA.
Tariff Formula
- Trump's tariff formula was based on trade deficit divided by imports.
- Despite criticism, the logic aims to incentivize countries to fix trade imbalances.