Slate News Slate Money | That Wack-Ass Tariff Formula
Apr 5, 2025
The hosts dive into Trump's new tariffs, questioning the bizarre math behind them and the stock market's harsh response. They discuss the potential fallout from Trump's clash with major law firms, drawing parallels to the erosion of America's global standing. The surprising drop in the dollar's value prompts analysis of the complex relationship between tariffs and currency strength. With humor and insight, the conversation navigates through quirky trade policies and the economic impact on sectors like insurance amidst growing climate challenges.
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Trump's Tariff Announcement
- Trump announced tariffs on many countries, some with unusually high rates like 46% on Vietnam.
- The tariffs are based on a questionable formula, considering non-tariff barriers and coinciding with trade deficits.
Tariffs as Real Estate Deals
- Trump's approach to tariffs resembles real estate deals, treating them as one-off transactions.
- This undermines trust with trading partners, as international relations require more consistent and reliable negotiations.
Impact of Tariffs on Overseas Jobs
- Globalization created jobs overseas, raising standards of living in developing countries like China and Cambodia.
- Tariffs threaten these gains, potentially harming workers in those nations who rely on these jobs.