Sorting Through Liberation Day. Do Democrats Owe Us An Explanation For Shifting Ideology? (with Karol Markowicz)

“Liberation Day” has come and gone. The massive tariff announcement from the White House that landed just after markets closed on Wednesday. It’s a sweeping 10% universal tariff on all goods, effective Saturday, April 5th, with even higher rates for countries like China (34%), the EU (20%), Japan (24%), and an eyebrow-raising 46% for Vietnam. Cars assembled abroad? They’re getting hit with a 25% tariff starting May 3rd.

Put simply, the market didn’t take kindly to this. It’s been a financial bloodbath: the Dow fell 1,400 points (around 3.8%), with the S&P and NASDAQ down even more. Apple and Nvidia alone lost a combined $470 billion in value, and the dollar hit a six-month low. Investors are clearly spooked by what could be the beginning of a global trade war. I’m not an economist, and I plan to have some real-deal experts on the show next week to discuss this in more detail, but from where I sit, this feels like a high-stakes gamble.

Politically, this is an all-in move by Trump. If his critics are right, this could usher in financial ruin. But if the market recovers, prices stabilize, and jobs return, then maybe — just maybe — he’s onto something. The key indicators to watch: inflation and jobs. If grocery bills soar, he’s in trouble. If not, and if some manufacturing jobs make their way back to the U.S., this could be a paradigm shift.

We’re witnessing something that happens maybe once in a generation — one of America’s major political parties changing its stance on a foundational economic principle. The GOP, long champions of free trade, are now planting their flag in protectionist soil. I grew up associating tariffs with progressive, union-backed economic arguments. Yet here we are, with a Republican president pushing a policy that would’ve made progressives cheer in decades past.

Trump’s economic approach would have been seen as left-wing populism not too long ago. The idea that tariffs can be used to protect American jobs is not new, but seeing it come from the right is a dramatic turn. It makes this moment politically fascinating, even if it brings financial risk.

The big question remains: who’s right? Every economist I’ve ever read has warned against tariffs, citing global market efficiencies and the cost to consumers. But Trump is betting on a different equation — one where protecting American industries and reducing the trade deficit leads to long-term gains.

As I look at this from my seat, the numbers make me queasy. A 46% tariff on Vietnam because of a trade deficit calculation? That feels arbitrary at best. Aiming for a zero trade deficit with every nation doesn’t necessarily reflect economic reality. We’ll see how this unfolds, but for now, it’s a major inflection point in both economic policy and political identity.

Chapters

00:00:00 - Intro and Tariff Thoughts

00:09:29 - Interview with Karol Markowicz

00:25:00 - Update

00:26:39 - Eric Adams Goes Independent

00:30:10 - NSC Firings

00:33:11 - Senate Republican’s Budget Plan

00:37:28 - Interview with Karol Markowicz, continued

01:06:13 - Wrap-up

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