WEALTHTRACK New US Trade Policies Impact the Global Financial System
May 2, 2025
John Lipsky, a senior fellow at Johns Hopkins University and former IMF deputy managing director, dives into the upheaval caused by new U.S. tariff policies. He unpacks how these changes are reshaping global trade and financial systems, raising concerns about rising protectionism. Lipsky emphasizes the shift towards a service-driven economy, detailing impacts on GDP and trade dynamics. He also touches on the evolving investment landscape and the need for cooperation among nations amidst growing uncertainties in the financial markets.
AI Snips
Chapters
Books
Transcript
Episode notes
Post-War Trade System Undermined
- The post-WWII global trading and financial systems created by the US promoted rapid global trade and economic growth.
- Current US trade policies undermine this system, risking slower growth and increased trade barriers.
Reciprocal Tariffs Conflict with WTO
- The US reciprocal tariff policy contradicts the WTO's most favored nation principle.
- This shift may mean the US is moving away from fair, non-discriminatory international trade rules.
Post-Crisis Trade Slowdown & Divergence
- Global trade growth slowed and protectionism increased after the 2008 financial crisis.
- Europe continues trade liberalization, while the US pursues unclear, large-scale protectionist policies.
