The Khanversation with Imran Khan Economist Michael Strain on Tariffs, Trade Gaps, and Global Power Dynamics
Apr 15, 2025
In a fascinating discussion, Michael Strain, a Georgetown University professor and senior fellow at the American Enterprise Institute, delves into U.S. trade policy and the implications of tariffs. He challenges common narratives about manufacturing decline, arguing that technology plays a bigger role. The conversation highlights the complex relationship between tariffs, trade deficits, and international alliances. Strain also examines market reactions, including rising bond yields, and warns of the economic risks posed by escalating trade tensions.
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Tariffs Harm Consumers and Allies
- Tariffs raise prices on imported goods harming consumers and manufacturers alike.
- Tariffs can create geopolitical tensions, especially when applied against allies.
Manufacturing Job Decline Misattributed
- U.S. manufacturing output is near all-time highs despite job declines.
- Declining manufacturing jobs are mainly due to technology, not trade.
Trade's Net Job Impact Is Small
- Trade with China caused about 2 million manufacturing job losses over a decade.
- However, exports to China also created jobs, making trade's net impact on employment small.