Consider This from NPR Trump is betting the economy on his tariff theory
25 snips
Apr 1, 2025 President Trump views tariffs as a versatile tool for fixing economic issues, from negotiating trade deals to funding tax cuts. This approach raises questions about its effectiveness in protecting American jobs against international competition. Rana Foroohar describes these tariffs as an 'experiment' that might reshape the global economy. The discussion highlights the complexities of trade balances, consumer prices, and the potential for inflation and trade wars arising from these bold economic strategies.
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Trade Exploitation?
- Trump believes the U.S. has been exploited in trade due to low tariffs.
- However, the U.S. remains economically successful compared to other nations.
Trade Deficits as Subsidies?
- Rana Foroohar disagrees with Trump's view of trade deficits as subsidies to other countries.
- She notes the U.S. strategy has been to prioritize low consumer prices and high stock prices via open markets.
New Tariffs' Impact
- Previous tariffs' costs were largely absorbed by consumers and offset by Chinese currency adjustments.
- However, the new tariffs' broader scope may limit such adjustments, increasing the risk of a trade war.
