Power Play How the US-China trade war will do 'enormous damage' to the world
Apr 10, 2025
Join Jason Furman, former top economic advisor to President Obama and Harvard professor, as he unpacks the turbulent landscape of U.S.-China trade relations. Furman discusses Trump's abrupt tariff policy reversal and its repercussions on global markets. He sheds light on the historic peak of U.S.-China tariffs and the inflationary pressures facing American consumers. The conversation delves into the intricate dynamics of trade negotiations, highlighting the internal conflicts within the U.S. administration and the broad implications for the world economy.
AI Snips
Chapters
Transcript
Episode notes
Trump's Tariff Reversal
- President Trump's tariff policy reversal shows he is responsive to market pressures.
- However, the current tariff rate on Chinese imports is the highest since the 1940s, causing inflation.
Impact of Tariffs on China
- High tariffs on all countries make it impossible to achieve objectives with China.
- Focusing high tariffs primarily on China may yield uncertain gains but significant pain for Americans.
Trump's Pain Threshold
- It's uncertain what will pressure President Trump to change his stance on tariffs.
- He seems determined to restructure the global economic system, viewing tariffs as a legacy issue.