Economist Podcasts Import-extort: what to make of Donald Trump’s titanic tariffs
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Apr 3, 2025 
Join Simon Rabinovitch, US economics editor for The Economist, and Douglas Irwin, economics professor at Dartmouth, as they dissect Donald Trump's sweeping tariff changes. They delve into the chaotic decision-making behind these trade policies and their historical context, drawing parallels to past protectionist measures like the Smoot-Hawley Act. Expect insights into the implications for global supply chains, consumer costs, and potential backlash in the face of rising economic challenges. It's a lively and provocative discussion on the future of American trade.
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Serious Tariff Hike
- Trump's tariff announcement is serious, exceeding worst-case scenarios.
- The US effective tariff rate will be the highest since 1900, exceeding Great Depression levels.
Rushed and Chaotic Process
- The rushed announcement, targeting even uninhabited islands, suggests a lack of careful deliberation.
- Top Trump officials admitted uncertainty just days prior, highlighting the chaotic process.
Impractical Negotiations
- Bilateral negotiations with all targeted countries are practically impossible.
- The USTR lacks capacity, and Trump's ask remains unclear, hindering meaningful discussions.
