The Charles C. W. Cooke Podcast Episode 85: The Donald Trump Tariff Extravaganza
Apr 3, 2025
Scott Lincicome, Vice President of General Economics and Trade at the Cato Institute, joins the discussion to dissect Donald Trump's tariff policies. He explains what tariffs are and why they often do more harm than good. Lincicome debunks the myth of a lost manufacturing base, showing that the U.S. still leads in production. He argues against broad tariffs on China, emphasizing their unintended consequences on global supply chains and costs. The conversation ends on a hopeful note about the future of free trade amid rising political challenges.
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Tariff Purposes and Conflicts
- Tariffs are taxes imposed on imported goods, serving three main purposes: revenue, protection, and strategic leverage.
- These objectives often conflict, making it difficult to achieve all simultaneously.
Tariff Inefficiency and Economic Harm
- Tariffs are inefficient taxes compared to alternatives like sales or income taxes, often leading to economic drag and retaliation.
- Protecting industries with tariffs discourages innovation and competitiveness, ultimately harming the economy.
Historical Tariff Context
- President Trump often cites McKinley-era tariffs as successful, but historical analysis suggests other factors drove prosperity then.
- The economic landscape has changed drastically, rendering 19th-century tariff policies ineffective today.