Americast Will Trump’s tariffs start a global trade war?
Apr 3, 2025
Donald Trump’s new tariffs may spark a global trade war, raising consumer prices and reshaping economies worldwide. The hosts break down which countries will be hit hardest and how the UK might fare amidst these changes. They highlight the odd criteria behind the tariff lists and the potential backfire on American manufacturing. International reactions from countries like South Korea and Japan emphasize the wide-reaching implications of these policies, while Vietnam’s shifting alliances could alter the trade landscape even further.
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Tariffs as Taxes
- Tariffs are import taxes levied on importers, not foreign countries, impacting consumer prices.
- Trump claims tariffs fund US tax cuts, but they actually function as a tax on consumers.
Reshaping International Trade
- Trump's tariffs represent a significant shift in US trade policy, moving away from free trade.
- This marks a reshaping of the international economic order previously dominated by the US.
Wider Impact of Tariffs
- Tariffs on imported goods can increase the prices of domestically produced alternatives due to supply and demand.
- Trump's washing machine tariff exemplifies this effect, as domestic machine prices also rose.