The Reason Roundtable

Trump's Dumb Trade War

12 snips
Feb 3, 2025
Guest Eric Boehm, a trade policy expert at Reason magazine, dives into the chaos of Trump's tariffs on Canada, Mexico, and China. He dissects the economic ramifications, questioning their effectiveness and impact on consumer prices. The discussion touches on political motivations, historical precedents, and the tangled relationship between trade and federal budget decisions. The group shares sharp insights mixed with humor while lamenting the potential for a damaging trade war that could reshape U.S. relations with its top partners.
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INSIGHT

Tariff Problems

  • Tariffs impose economic costs and fail to achieve policy aims.
  • They also foster political dysfunction and often contribute to corruption.
INSIGHT

Tariffs as Leverage

  • Trump uses tariffs as leverage to achieve various goals.
  • He has used this tactic with Mexico to increase border security.
ANECDOTE

Historical Tariff Corruption

  • Replacing income tax with tariffs led to significant corruption in the past.
  • Grover Cleveland even refused to sign a tariff bill due to its corrupt additions.
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