Bloomberg Talks Former IMF Chief Economist Maurice Obstfeld Talks Tariffs
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Oct 15, 2025 
Maurice Obstfeld, former IMF Chief Economist and professor at UC Berkeley, dives into the complexities of tariffs and trade tensions. He discusses the current strain on the global trade system, which is impacted by geopolitical factors and ongoing trade wars. Obstfeld highlights how corporations have initially absorbed tariff costs but will soon pass them on. He expresses concerns about the long-term status of the dollar and connects rising gold and Bitcoin prices to increasing fears around economic stability.
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Global Trade Under Strain
- Trade networks are under strain from tariffs, geopolitical tensions, and the trade war.
- Maurice Obstfeld warns this pressure risks fragmenting global supply lines and increasing volatility.
Finance-Trade Divergence
- The U.S. economy has become highly financialized while trade faces backlash.
- Obstfeld suggests this divergence may not persist and trade tensions could spill into finance.
Tariffs Will Shift Costs Eventually
- Firms initially absorbed tariffs while awaiting policy clarity, muting immediate price effects.
- Obstfeld expects companies will eventually pass tariff costs to consumers as they adjust.