Economist Podcasts Thy neighbours, beggared: Trump’s opening tariffs
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Feb 3, 2025 
Henry Kerr, Economics editor for The Economist, dives into the tumultuous world of trade wars ignited by President Trump's tariffs on Canada and Mexico. He discusses the historical backdrop of NAFTA and USMCA while pondering the potential economic fallout and retaliation strategies. Kerr also explores the revival of supersonic flights and how innovative companies like Boom Supersonic aim to overcome past challenges. Additionally, he touches on the curious trend of 'ovation inflation' in London's theatres, where standing ovations have lost their once-rare charm.
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Trump's Tariffs: A New Era of Protectionism
- President Trump's tariffs represent the largest attack on free trade in decades, significantly disrupting global and North American economies.
- These tariffs differ from previous ones in their suddenness, scope, and focus on close trading partners like Canada and Mexico.
Canada and Mexico's Retaliation Strategy
- Canada and Mexico face an asymmetric trade battle due to their smaller economies and dependence on US trade.
- Their retaliatory tariffs aim to pressure US politics by targeting Republican states.
Trump's Tariff Authority and Legal Challenges
- Trump's tariff power stems from the International Emergency Economic Powers Act, allowing him to impose tariffs during national emergencies.
- Legal challenges are likely but courts have historically sided with the White House on national security matters.