Foreign Policy Live The Tariff Debate
16 snips
Apr 8, 2025 
Oren Cass, founder of American Compass and author of The Once and Future Worker, confronts esteemed UCLA economist Kimberly Clausing, author of Open, in a lively discussion on Trump's tariffs. They debate how these tariffs are impacting markets and the economy overall. The conversation delves into the complexities of tariffs, their effects on lower-income families, and the role of the World Trade Organization. They also discuss the misconceptions surrounding trade deficits and the necessity for balanced trade policies to safeguard U.S. interests.
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The Case for and Against Tariffs
- There's a strong consensus among mainstream economists that Trump's tariffs are ruinous.
- However, Trump's argument might be to protect domestic industries and jobs, challenge unfair trade practices, and gain leverage in trade negotiations.
Tariffs as a Consumer Tax
- Kimberly Clausing argues that Trump's tariffs are self-destructive, acting as a large consumer tax increase.
- They disproportionately affect low-income households, harm US production, and are implemented chaotically.
Oren Cass's Tariff Stance
- Oren Cass supports a global 10% tariff and decoupling from China through higher, phased-in tariffs.
- He finds the reciprocal tariffs confusing and poorly communicated.
