The Economics Show

Are US tariffs just the beginning? With Abraham Newman

Apr 7, 2025

Abraham Newman, a political science professor at Georgetown University and an expert on weaponised interdependence, dives deep into the shifting sands of global economics. He critiques U.S. tariffs as an outdated form of economic warfare, warning of their implications on global trade dynamics. The conversation explores the intricacies of U.S.-EU relations, highlighting Europe's struggle to adapt to new coercive economic strategies. Newman also discusses the potential for EU-China collaboration, emphasizing the need for a united front against rising geopolitical tensions.

31:33

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Abraham Newman

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Quick takeaways

The U.S. tariffs signify a return to outdated economic policies, highlighting a shift towards more sophisticated tools like sanctions for global influence.

The EU must adapt its strategies in response to U.S. economic coercion, fostering cooperation to safeguard its interests in this evolving landscape.

Deep dives

Tariffs vs. Modern Economic Tools

The introduction of a minimum 10% tariff on various imports by the U.S. signifies a return to 19th-century economic policies. However, in today's interconnected global economy, tariffs are considered outdated compared to more sophisticated tools like sanctions and export controls. These modern methods allow the U.S. to exert influence by controlling access to vital technologies, finances, and market networks rather than relying on blunt instruments like tariffs. This shift raises concerns about how these coercive powers might disrupt global trade and provoke responses from major players such as China and the EU.

Intro

2min

Economic Coercion and Global Power Dynamics

16min

Economics Under Fire: The EU's Challenges in Trump’s Era

2min

Navigating U.S.-Europe Economic Dynamics

5min

Harnessing Geo-Economic Power: Europe's Strategic Position

2min

Forging a G2: EU-China Collaboration

6min

As Donald Trump declares a trade war on the rest of the world, it’s time to learn about a field of economic research known as “weaponised interdependence”. The bad news is that the US president’s weapon of choice – imposing tariffs on goods imports – is a fairly outdated tool of economic warfare. Globalisation and advances in financial and communications technology have created an arsenal of additional weapons, which may yet be fired off by the US or by other big players such as China and the EU. To find out more, the FT’s Alan Beattie speaks to the leading world expert on weaponised interdependence, Abraham Newman, professor of political science at Georgetown University, and co-author with Henry Farrell of 'Underground Empire: How America Weaponized the World Economy.' Newman warns that Europe, in particular, needs to completely change its gameplan in response to this new world of dominance relationships.

Presented by Alan Beattie. Produced by Mischa Frankl-Duval and Laurence Knight. Manuela Saragosa is the executive producer. Original music by Breen Turner. Audio mix by Simon Panayi. The FT’s head of audio is Cheryl Brumley.

Read a transcript of this episode on FT.com

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