Valuetainment "Trump Has A Point" - Richard Werner BREAKS DOWN How US-China Tariff Tactics Will Shape Global Trade
Apr 10, 2025
Richard Werner, an influential economist known for his insights on global finance, joins to explore how U.S.-China tariff dynamics could reshape trade. They discuss who benefits from potential zero tariffs, revealing implications for big retailers and tech firms while highlighting the risks for domestic manufacturers. Werner emphasizes the need for strategic tariffs to bolster U.S. industries and addresses the intricate political landscape affecting these economic relations. It's a deep dive into the future of jobs, inflation, and global trade leverage.
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Why Zero Tariffs Benefit All
- Zero reciprocal tariffs is the best scenario where everyone wins because trade is the main source of wealth creation.
- Tariffs historically helped developing economies move up value chains by protecting their domestic industries selectively.
Tariffs Boost Economic Development
- Tariffs can boost developing economies by helping them import raw materials cheaply and export value-added goods.
- This strategy was key to economic growth in Japan, Germany, and the US historically.
Trump Challenges Economic Orthodoxy
- U.S. policy allowed job transfer to China by not preventing offshoring of manufacturing.
- Trump challenges orthodox economics aiming to reverse this trend and restore more domestic manufacturing jobs.