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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Quick takeaways
- Tariffs are inefficient taxes that distort markets, limit economic growth, and trigger retaliatory measures from trading partners.
- Despite current protectionist trends, there is potential for a resurgence in free trade as awareness of its benefits grows among politicians.
Deep dives
Understanding Tariffs
A tariff is a tax imposed by a government on imports entering a country, which serves various purposes including generating revenue, protecting domestic industries, and achieving strategic foreign policy objectives. Historically, the United States utilized tariffs extensively for revenue until the introduction of income taxes, shifting focus predominantly to protection. Currently, while some countries still rely on tariffs for revenue, most developed nations have moved away from this practice as they have more sophisticated revenue systems. The protective function of tariffs aims to raise the price of imported goods, making local products more competitive, but this has various economic implications that merit examination.
