The Capitalism and Freedom in the Twenty-First Century Podcast cover image

The Capitalism and Freedom in the Twenty-First Century Podcast

Tariffs and US Trade Policy History with Douglas Irwin (Dartmouth Economics Professor)

Jan 24, 2025
Douglas Irwin, a leading economist from Dartmouth College and expert in trade policy, shares insights on U.S. trade history and the evolution of tariffs. He discusses the impact of globalization on consumers and labor markets and examines the fading influence of the World Trade Organization. Irwin analyzes recent U.S. actions affecting steel imports and delves into the resilience of the U.S. dollar amidst global shifts, highlighting ongoing complexities in semiconductor trade policy and its implications for national security.
54:02

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • U.S. trade policy has evolved through three phases: revenue generation, protectionism, and reciprocity, impacting domestic industries and global relations.
  • National security has increasingly influenced U.S. trade policy, especially with China, prioritizing geopolitical considerations over traditional economic trade benefits.

Deep dives

The Three R's of U.S. Trade Policy

U.S. trade policy has evolved through three significant periods, summarized as the three R's: revenue, restriction, and reciprocity. Initially, tariffs were imposed primarily for revenue generation to fund the new government after independence. Following the Civil War, tariffs aimed to restrict imports and protect domestic industries, marking a shift towards protectionism. The period of reciprocity began during the Great Depression, where the focus shifted to negotiating trade agreements and lowering tariffs globally to stimulate commerce.

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