The Majority Report with Sam Seder 3544 - Americans Are Paying For Trump's Trade War w/ Justin Wolfers
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Jul 23, 2025 
Justin Wolfers, a Professor of Economics and Public Policy at the University of Michigan, dives into the chaos of Trump's trade policies. He explains how irrational tariffs are impacting working-class Americans and fueling inflation. The conversation touches on misconceptions surrounding U.S.-Japan trade dynamics, highlighting that American cars face challenges beyond tariffs. Wolfers also discusses the critical need for banking independence amid political pressures, unveiling the risks involved with appointing loyalists to economic roles.
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Misunderstanding Tariffs and Barriers
- Trump's tariffs often confuse the tax imposed on Americans buying foreign goods with trade barriers actual countries impose on U.S. exports.
- Many trade barriers are non-tariff related, such as cultural preferences or regulations, not simple import taxes.
Trade Barriers Are Complex
- Many trade barriers exist for legitimate safety or health reasons, or political lobbying interests, not for economic harm.
- The global consensus is for countries to keep tariffs as low as possible despite some political resistance.
Market Underestimates Tariff Risks
- Wall Street reacts minimally to Trump's tariff threats because it expects him to back down.
- If Trump fully implements tariffs, they could surpass previous high levels, raising real economic concerns.