The Gist Trump’s Trade Tactics: Betwixt Chaos and Coherence
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Apr 14, 2025 Barry Nalebuff, a Yale professor and negotiation expert, dissects Trump’s unpredictable trade tactics. He analyzes the recent rollback of tariffs on Chinese electronics, questioning how these moves align with Trump's goals. The discussion delves into Trump’s negotiation style, highlighting the use of extreme positions for credibility. Nalebuff also tackles the uproar over chlorinated chicken in UK-U.S. trade talks, exploring the clash between scientific consensus and public perception of food safety.
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Extreme Anchors Backfire
- Trump's extreme tariff positions backfired, causing a loss of credibility.
- His extreme anchors, like starting with high tariffs, made his later concessions seem less believable.
Conflicting Tariff Goals
- Trump's tariff strategy could be effective in achieving zero tariffs from other countries.
- However, this contradicts the goal of raising revenue through tariffs, as high tariffs deter trade.
Wall Negotiation
- Trump's "Mexico will pay for the wall" negotiation failed practically but succeeded politically.
- It resonated with his base and helped him get elected, despite not achieving its stated goal.