The Story How Trump’s tariffs are splitting his base
Apr 7, 2025
Gerard Baker, a seasoned columnist for The Times and editor-at-large of The Wall Street Journal, dives into the divisive effects of Trump's tariffs on his support base. He discusses the economic toll on both blue-collar workers and billionaire backers, questioning who will bear the brunt of these policies. The conversation reveals growing unrest among Republicans and highlights the stark challenges facing America's Rust Belt. Baker also reflects on the broader global implications, illustrating how U.S. trade decisions resonate far beyond its borders.
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Trump's Tariff-Driven Downturn
- The stock market downturn is primarily caused by Trump's tariffs, unlike previous crashes with broader causes.
- This situation creates high uncertainty, deterring investment and potentially impacting the economy more than the tariffs themselves.
Broad Impact of Tariffs
- The impact of the tariffs will affect a large portion of the American population, despite claims to the contrary.
- While half may not directly own stocks, they will be hit by increased import prices and potential economic downturn consequences.
Tariffs' Impact on the Rust Belt
- Tariffs are expected to hit Michigan's Rust Belt hard, despite being a key target demographic for Trump.
- While the long-term goal is to bring manufacturing jobs back, short-term pain from increased steel prices and retaliatory tariffs is inevitable.