When the levy doesn’t break: a trade-war world adjusts
Mar 13, 2025
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Rajan Ashambog, Business Affairs Editor at The Economist, dives into the complexities of today's trade wars and the fervent return of tariffs under the Trump administration. He discusses the chilling effects of these policies on global trade and domestic manufacturing. The conversation also explores the rise of hard-right political parties in Europe, analyzing the socio-economic factors fueling their success. Finally, they touch on the influence of AI technology in shaping modern industries. A thought-provoking exploration of today's turbulent economic landscape!
The Trump administration's renewed commitment to tariffs has significantly impacted global trade relations and investor confidence amidst escalating tensions.
The rise of hard-right political parties in Europe reflects deep-rooted economic anxieties and changing voter sentiments, complicating their path to political power.
Deep dives
The Impact of Tariffs on Trade Relations
Recent developments in U.S. trade policy under President Trump's administration have introduced significant tariffs that have altered relationships with both allies and adversaries. The introduction of new tariffs on steel and aluminum imports reflects a more aggressive approach than during Trump's first term, as they target a broader range of products without exemptions. This shift has led to retaliatory actions from countries such as Canada and Europe, contributing to an escalating trade war that threatens global economic stability. Analysts warn that the decisive nature of these tariffs, along with Trump's administration's erratic approach, has shaken investor confidence and could have a long-lasting impact on both the U.S. and global markets.
The Rise of Hard-Right Political Parties
Hard-right political parties have gained unprecedented popularity across Europe, with parties like the Alternative for Germany experiencing a significant increase in voter support. This trend is fueled by economic anxieties following globalization, the financial crisis, and rising concerns over immigration. Despite their growing voter base, hard-right parties face challenges translating this support into political power, often being excluded from government coalitions due to their controversial positions. The mainstream political response has been to adapt some of the rhetoric and policies of these parties; however, this strategy frequently backfires, reinforcing hard-right sentiments among disillusioned voters.
Reconsidering First and Last Words
Cultural expectations surrounding a person's first and last words are often misguided, as explored in a new book that dismantles the mythology surrounding these life milestones. The book argues that societal pressures shape the significance placed on first words, which vary globally in meaning and expectation, sometimes reflecting defiance rather than innocence. Similarly, last words, which are often anticipated to be profound, frequently lack clarity given the realities of prolonged illness and death, leading to more non-verbal forms of communication. This insightful examination underscores the evolving nature of language and meaning throughout life, challenging traditional beliefs about how we perceive the beginnings and ends of communication.
The Trump administration’s dedication to tariffs now seems more fervent than the first time around. Markets are noticing. We ask what might temper the trade war. Europe’s once-fringe hard-right parties are now leading polls, even if not yet leading governments; we look at where things are headed (11:07). And tackling the mythology behind people’s very first and very last words (16:47).
