The Bunker – News without the nonsense Trump's tariffs explained: How to understand his looming trade wars
Jan 28, 2025
Dmitry Grozoubinski, Director of Explain Trade and author of Why Politicians Lie About Trade, provides insight into Trump's controversial tariffs. He discusses their historical roots and how they’ve resurfaced as a political tool. Grozoubinski highlights the precarious impact on lower-income consumers and essential goods. The conversation also explores the manipulation of public sentiment around tariffs and their role as negotiation strategies in international trade. Expect an eye-opening look at the complexity behind economic decisions in the political arena.
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Tariff Definition
- A tariff is a tax on imported goods, essentially a patriotism tax.
- It encourages buying local products.
Historical Tariff Appeal
- Historically, tariffs were favored due to ease of collection at borders and targeting luxury goods.
- This allowed progressive taxation and revenue generation with limited infrastructure.
Economist View on Tariffs
- Economists dislike tariffs as they are inefficient for revenue and not as progressive.
- They force domestic production, even when less efficient than global alternatives.