The Economics Show Trump and the history of tariffs. With Doug Irwin
Jan 20, 2025
Doug Irwin, an economics professor at Dartmouth College and trade author, discusses the significant history of tariffs in the U.S. He explores how tariffs were employed under different administrations, including Trump's. Irwin highlights Alexander Hamilton's influence and critiques the belief that high tariffs always stimulate growth. The conversation also touches on global trade dynamics, particularly concerning China's role, and the political complexities surrounding tariff policies today, illustrating how past decisions echo in current economic relations.
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Wilson's Tariff Reform
- Woodrow Wilson lowered tariffs, seemingly marking a new era.
- However, this proved temporary, as high tariffs returned after his presidency.
Hamilton's Tariff Motivation
- Alexander Hamilton, while advocating for tariffs, wasn't as protectionist as some believe.
- He primarily needed tariffs for government revenue, not to restrict imports.
The Three R's of Tariffs
- Tariffs have three main purposes: revenue, restriction, and reciprocity.
- These purposes often conflict, creating trade-offs in policy.