Political Currency Trump’s tariffs: Is Starmer right to ‘keep calm and carry on’?
23 snips
Apr 3, 2025 Hosts Ed Balls and George Osborne explore the economic chaos following Trump's 'Liberation Day' and the simplistic rationale behind his tariffs. They debate Keir Starmer's calm approach amid potential repercussions for UK industries like whiskey. Attention turns to the upcoming Australian federal election, where political dynamics shift as opposition leader Peter Dutton champions efficiency but risks alienating voters. The discussion intertwines international trade tensions and domestic strategies, revealing the fragile balance of politics in both the UK and Australia.
AI Snips
Chapters
Books
Transcript
Episode notes
Tariff Formula
- Trump's tariffs are based on a simple formula: trade deficit divided by import value.
- This method ignores economic complexities like comparative advantage and service-based economies.
Fed Dilemma
- Trump's tariffs complicate the Federal Reserve's response to stagflation.
- Markets expect interest rate cuts, but inflation from tariffs may hinder this.
Trump's Strategy
- Trump's goal may be to repatriate manufacturing, necessitating firm tariff stances.
- This contrasts with using tariffs as leverage for trade deals.
