Bad Faith Episode 462 - The Truth About Tariffs (w/ Lori Wallach)
Apr 3, 2025
Lori Wallach, Director of Rethink Trade and trade policy expert, brings her insights on tariffs and their impact on labor. She delves into how Trump's tariff policies, driven by victimization rather than strategy, can support American workers and rectify trade imbalances. Wallach critiques ineffective approaches to combat the fentanyl crisis via tariffs and highlights the urgent need for comprehensive policies to bolster domestic manufacturing. Additionally, she explores the complex relationship between U.S.-China trade and environmental concerns, advocating for higher standards.
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Tariffs: A Legitimate Tool
- Tariffs are a legitimate tool for various policy goals, like enforcing labor standards or environmental regulations.
- They're not inherently bad, despite common misconceptions.
How Tariffs Work
- A tariff increases the wholesale price of imported goods, encouraging businesses to seek alternative sources.
- This can incentivize better labor practices and environmental standards in exporting countries.
Trump's Tariffs and Inflation
- Despite Trump's tariffs on Chinese goods, inflation didn't spike in 2018-2019.
- Companies often absorb the tariff cost rather than passing it onto consumers.