Foreign Policy Live

The Case for Trump’s Tariffs

33 snips
Nov 22, 2024
Oren Cass, founder and chief economist of American Compass, advocates for a nuanced view of tariffs, arguing that they can protect domestic industries while challenging the idea that free trade is always beneficial. He discusses the economic implications of Trump's proposed tariffs, particularly their effects on inflation and low-income families. Cass also critiques traditional economic metrics like GDP, calling for a focus on median figures to better reflect the realities of the middle class and explores how Biden's policies might alter the economic landscape.
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INSIGHT

Free Trade's Unmet Promises

  • Free trade's benefits, predicted by economists around 2000, haven't materialized.
  • Reversing course on trade policies may help those left behind by globalization.
INSIGHT

Tariffs and Domestic Production

  • Tariffs aren't merely sales taxes; they acknowledge the value of domestic production.
  • Economists have long resisted recognizing the importance of making things domestically.
ANECDOTE

Historical Protectionism

  • The US historically used high tariffs, and East Asian economies developed similarly.
  • Reagan, despite a free-market image, used trade barriers to bolster the US auto industry.
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