Adam Posen, president of the Peterson Institute for International Economics, is a leading expert on trade policy. He discusses how Trump's proposed 20% tariffs are essentially 'weaponizing' uncertainty in the market. Posen critiques the effectiveness of tariffs, arguing they haven't achieved their intended goals and could negatively impact the U.S. economy. He also touches on the delicate balance between manufacturing and technological advancement in the context of national security and globalization, particularly regarding China.
Adam Posen highlights how Trump's proposed tariffs could create economic uncertainty that ultimately hampers both domestic growth and international trade relations.
The discussion underscores a disconnect between American voters' perceptions of globalization's impact and the actual strong performance of the U.S. economy.
Deep dives
Instagram's Teen Account Protections
Instagram has introduced automatic protections for teen accounts to enhance user safety and privacy. These measures limit who can contact teens and what content they can view, aiming to create a safer online environment for younger users. The initiative reflects a growing awareness of the challenges faced by teenagers on social media platforms, emphasizing parental controls and user security. By implementing such features, Instagram seeks to address concerns surrounding digital well-being and promote responsible social media usage among youth.
Impact of Tariffs on the U.S. Economy
Proposed tariffs and tax cuts under the 'Build It In America' plan aim to encourage domestic production but also raise concerns about economic repercussions. Experts warn that these tariffs may create uncertainty among businesses and governments, leading to defensive measures rather than productive trade negotiations. This uncertainty, if not managed properly, could hinder economic growth and backfire on both the domestic economy and international relations. Critics argue that the approach may result in higher costs for consumers, effectively acting as a tax on the average American.
Globalization and Domestic Manufacturing
The issue of globalization and its impact on domestic manufacturing continues to resonate among American voters, especially in regions feeling economically marginalized. Despite this perception, data suggests that the U.S. economy is performing well, with a high labor force participation rate and low unemployment. The discussion highlights a disconnect between public sentiment and economic realities, as many successful companies focus on R&D rather than traditional manufacturing. To address frustrations without sparking political backlash, there is a call for a more nuanced understanding of economic changes and the need for adaptability in the workforce.
Adam Posen, president at the Peterson Institute for International Economics, says former President Donald Trump is "weaponizing" uncertainty with his tariff plans. Trump wants to put a 20% tariff on all imports. Posen spoke with Bloomberg's Jonathan Ferro and Lisa Abramowicz