Trumponomics Why Tariffs Can’t Fix America's Economic Malaise
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May 28, 2025 
In this discussion, Richard Baldwin, an international economics expert and author of The Great Trade Hack, critiques Trump's tariffs as ineffective for protecting American workers. He argues that these measures stem from a 'grievance' mindset rather than substantive economic strategy. Baldwin warns that unilateral tariffs may leave the U.S. isolated in a changing global trade landscape. He underscores the need for comprehensive social policies instead of protectionism to truly address the socioeconomic challenges facing the middle class.
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Trump's Trade Hack Explained
- Trump's April 2nd tariffs were a deliberate break from the WTO rules, aiming to disrupt the world trading system.
- This was not normal trade war behavior but an unprecedented 'hack' on global trade.
The Grievance Doctrine Basis
- Trump's tariffs are driven by a new "grievance doctrine" blaming global elites for hurting the American middle class.
- Economically incoherent, the tariffs are emotionally coherent responses to perceived victimhood.
Tariffs Are Placebo Policies
- America's middle class is in crisis with various social pathologies requiring real social policy solutions.
- Tariffs are a placebo policy not addressing the root causes of middle-class suffering.
