Patrick Boyle On Finance How Trump’s Tariffs Will Transform Global Trade?
Apr 7, 2025
The podcast delves into the significant impact of recent tariffs announced by President Trump, marking a retreat from free market ideals. It discusses the immediate fallout, including stock market declines and the implications for trade negotiations. A humorous take compares convoluted trade policy to a game show, highlighting absurdities like tariffs on penguins. The conversation balances historical context with current challenges, emphasizing the nuanced relationship between tariffs, global trade, and American jobs.
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Tariffs as Taxes
- Tariffs are taxes on imported goods, paid by importers, not foreign countries.
- They encourage domestic purchases by increasing the price of imports.
Market Reaction to Tariffs
- The S&P 500 dropped nearly 5%, Nasdaq 6%, and specific sectors like tech and retail saw double-digit declines.
- The dollar, Treasury yields, and oil prices also fell, signaling lower growth expectations.
Flawed Tariff Formula
- The administration's tariff rates were calculated using a flawed formula.
- It simply divided the US trade deficit with each country by its exports to the US.