Cato Podcast Bad Arguments for Terrible Tariffs
8 snips
Apr 10, 2025 Colin Grabow, Associate Director of the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies, unpacks flawed tariff arguments. He reveals how tariffs often harm consumers more than help them. Grabow discusses the unintended consequences of leaving the Trans-Pacific Partnership and critiques the misconception of seeking self-sufficiency in trade. He also debunks the myth that tariffs boost manufacturing jobs, instead emphasizing the importance of free trade for foreign investment and economic growth.
AI Snips
Chapters
Transcript
Episode notes
Incoherent Tariff Arguments
- The US government's arguments for tariffs are contradictory, making their case weak.
- A consistent and economically sound policy would be to have zero tariffs.
Reciprocity and Tariffs
- The US imposed tariffs, even on countries like Singapore with zero tariffs on US imports.
- This contradicts the claim of reciprocity, as the US withdrew from the Trans-Pacific Partnership (TPP) which would've lowered tariffs.
Examples of Inconsistent Tariffs
- Singapore has near-zero tariffs for almost all imports, yet the US imposed a 10% tariff on them.
- This contrasts with protectionist Brazil (11% average tariff) also facing a 10% US tariff, while South Korea (free trade agreement with the US) got hit with 25%.