The Briefing Room Why does Trump love tariffs?
Jan 9, 2025
Sam Lowe, a Partner at Flint Global consultancy, and Duncan Weldon, an economist and author, delve into the multifaceted world of tariffs. They explore Trump's fascination with tariffs, questioning their implications for U.S. trade and global relations. The discussion highlights historical perspectives on tariffs, the challenges faced by U.S. companies reliant on imports, and the potential fallout of these policies on consumers. Listeners gain insight into the complexities of trade dynamics and the 'weaponized uncertainty' of our modern economic landscape.
AI Snips
Chapters
Transcript
Episode notes
Tariffs as Taxes
- Tariffs are essentially taxes on imported goods, differentiating them from taxes on domestic products.
- Historically, governments used tariffs under mercantilism, prioritizing exports and discouraging imports.
Winners and Losers
- Post-World War II, developed economies generally favored free trade with low tariffs.
- Economists acknowledge free trade creates winners and losers within countries.
Economy Size Matters
- Larger economies can be more self-sufficient, wielding more power in trade disputes.
- Small economies may struggle to compete with subsidized industries from larger countries without using tariffs.