Trade Talks
207. What happened on Trump’s tariff day
Apr 4, 2025
Soumaya Keynes, a Financial Times journalist and host of The Economics Show, joins to dissect President Trump’s April 2 tariff announcement. They explore the implications of new tariffs on imports, including a surprising 10% levy affecting various goods. The discussion highlights the controversial tariff formula aimed at reducing the trade deficit and its potential consequences for smaller nations. Insights on the legal dynamics surrounding these policies and their unexpected effects on trade with Asian countries reveal the complex nature of current trade negotiations.
29:16
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The recent tariff announcement signifies a major shift in U.S. trade policy, aiming to leverage negotiations by adjusting expectations for tariff rates.
- The use of a simplistic formula for determining tariff rates could lead to unintended economic consequences and instability for smaller nations within the trade landscape.
Deep dives
Impact of New Tariffs on Trade Relations
The announcement of significant new tariffs marks a shift in U.S. trade policy, with most countries facing an additional 10% tariff on various products. Key trading partners such as Mexico and Canada were notably absent from the initial tariff list but are set to face a baseline tariff of 12%, which is a considerable increase from previous rates. This decision is thought to provide leverage in ongoing trade negotiations, as it establishes new expectations for tariff rates moving forward. The tariffs are intended to address perceived imbalances in trade and national security concerns, impacting a wide range of industries and potentially disrupting existing supply chains.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
