Power Play Larry Summers: How to deal with Trump's tariff threat
Feb 6, 2025
Larry Summers, the former U.S. Treasury secretary and Harvard economics professor, delves into Trump's tariffs and their global repercussions. He critiques Trump's aggressive trade tactics with Mexico and Canada, while discussing the fraught dynamics with China. Summers offers strategic advice for the EU and UK, urging them to navigate this turbulent landscape wisely. Additionally, he tackles concerns surrounding academic freedom and the impact of federal policies on diversity initiatives at universities, emphasizing the need for open dialogue in these challenging times.
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Impact of Tariff Threats
- Trump's tariff threats, while potentially damaging, haven't been fully realized yet.
- The transactional approach to international relations may yield concessions but also risks future cooperation.
Effectiveness of Tariffs on Border Issues
- The effectiveness of Trump's tariffs in curbing illegal immigration and fentanyl flow is uncertain.
- A weaker Mexican economy might worsen, not improve, these issues.
China's Strategic Recalculation
- China's response to tariffs is part of a larger strategic recalculation of the US-China relationship.
- China might see opportunities with countries now distrustful of the US.