Fareed Zakaria GPS Big, Beautiful Tariffs
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Dec 28, 2025 This discussion dives into the dramatic increase in U.S. tariffs under Trump, marking the highest rates since the Great Depression. History reveals mixed results, highlighting lessons from past tariffs, like the Smoot-Hawley Act's economic fallout. The conversation explores the political implications of protectionism, from crony capitalism to favoritism in tariff exemptions. It also emphasizes the importance of open trade in contrast to the pitfalls of autocratic regimes and the evolving dynamics of global competition, particularly with China.
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Tariffs Hurt More Than They Help
- Tariffs raise domestic prices and typically harm more consumers than they help protected industries.
- Economists predict Trump's tariffs will reduce growth and cost households thousands yearly.
Manufacturing Nostalgia Misreads Today's Economy
- Manufacturing jobs have declined across rich countries while service and tech jobs grew dominant.
- Pursuing low-skill factory revival risks sacrificing higher-value future jobs and industries.
How Smoot‑Hawley Went Wrong
- The Smoot-Hawley Tariff began as a farmers' rescue but ballooned into industry-wide protectionism through vote trading.
- Retaliation and collapsing exports followed, worsening the Great Depression and costing political careers.
