Bloomberg Talks Former US Council of Economic Advisers Chairman Jason Furman Talks Tariffs
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Apr 2, 2025 Jason Furman sheds light on the flawed reasoning behind tariffs and their misconceptions regarding trade deficits. He highlights the economic and geopolitical risks posed by tariffs, especially those implemented during the Trump administration, stressing potential slowdowns and rising inflation. The podcast also examines how tariffs impact trade relationships and the economy, discussing retaliatory actions and currency shifts. Furman argues this turmoil may create short-term challenges but hints at possible long-term benefits, enriched by insights on the dollar and inflation.
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Trade Deficits and Imports
- Trump's grievance that other countries take advantage of the U.S. is undeserved.
- Trade deficits aren't inherently bad, and imports are beneficial.
Trump's Isolation on Tariffs
- Trump is seemingly isolated in his stance on tariffs, even within his administration.
- Officials like Mnuchin have previously expressed concerns about the negative impact of tariffs.
The Impact of Tariffs
- Other countries' high tariffs often hurt their own economies rather than the U.S.
- Reciprocal tariffs with countries like China and India would only require minor increases, not the substantial ones proposed.