The Inside Story Podcast Why is the US pushing for tariffs on its trade partners?
Feb 4, 2025
Dmitry Grozoubinski, Director of Explain Trade and former WTO delegate, joins Greg Swenson, founding partner at Brigg Macadam, to dissect the US's tariff strategies. They explore why tariffs are favored, especially against China, and the implications for global trade relationships. The discussion sheds light on consumer price impacts, evolving Republican trade views, and the economic consequences of these policies on voter sentiment. They also dive into the complexities of e-commerce's role in trade regulations and how countries like Canada and the EU can navigate this challenging landscape.
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Trump's Tariff Goals
- Donald Trump campaigned on fair trade and uses tariffs as geopolitical tools.
- He aims for equal tariffs and beneficial political goals for the US and the world.
Shifting Republican Views on Trade
- Republicans previously supported free trade, but now see it as unfair due to trade deficits.
- Trump prefers bilateral deals, citing Germany's higher car tariffs on American cars as an example of unfair trade.
Tariffs Explained
- Tariffs, a tax on imports, incentivize domestic purchases and raise Treasury funds.
- They can disrupt supply chains, but also serve as political leverage, like with Canada and Mexico.