FT News Briefing Swamp Notes: The costs of Trump’s tariffs
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Apr 5, 2025 
Ed Luce, the U.S. national editor and columnist for the Financial Times, dives into the implications of Trump's latest tariffs. He argues that these measures risk isolating the U.S. from the globalized economic system it helped establish. Luce explores the perplexing nature of these tariffs, suggesting they could lead to increased prices and inflation domestically. The conversation also highlights how these policies are reshaping international alliances and may provoke retaliatory actions from trade partners.
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Misleading Tariffs
- Trump's tariffs are baffling economists because they are based on a crude calculation.
- He divides a country's trade surplus with the US by its exports, resulting in misleading tariff rates.
Unilateralist Approach
- Trump's approach is aggressively unilateralist, targeting all countries regardless of their relationship with the US.
- This departs from traditional trade strategies and signals an economic war.
Unintended Consequences
- One unintended consequence of Trump's tariffs is other countries strengthening ties with China.
- This is happening as other nations recalibrate their trade strategies in response to US actions.