KQED's Forum The Fallout of Trump’s Expansive Tariffs
Apr 7, 2025
Stephanie Flanders, head of Bloomberg Economics, shares her insights on how Trump's tariffs have shocked U.S. markets. Lori Wallach, a trade expert, discusses the retaliatory actions from China and their potential to destabilize global relations. Economist Kyle Handley weighs in on the long-term effects these tariffs may have on American manufacturing and job growth. Together, they navigate the complexities of trade dynamics, automation, and the dire consequences of miscalculating economic policies.
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Market Reaction to Tariffs
- The US stock market experienced significant drops due to tariff announcements, entering correction territory.
- Other countries are hesitant to retaliate, as tariffs primarily harm the initiating country's consumers.
Tariff Calculation Flawed
- The Trump administration's tariff calculations were overly simplistic and based on a flawed formula.
- Economists criticize the formula's parameters and its ineffectiveness in a globalized economy.
Trade Imbalance and Abuses
- The current trade system is unbalanced, with 16 mercantilist countries maintaining large trade surpluses.
- These countries use practices like currency manipulation and subsidies, distorting trade values.