In this episode of Trumponomics, Stephanie Flanders hosts Nancy Cook and Ed Harrison to discuss the economic implications of Donald Trump's proposed tariff plan. The conversation covers the market's surprise reaction to the high tariff rates, the increasing influence of Peter Navarro in the White House, and the potential risks of recession. The discussion also explores the Federal Reserve's difficult position in managing inflation amidst these policies, the possibility of tax cuts as a countermeasure, and the long-term consequences of rising debt and a potential crisis of confidence in the US financial system. The episode concludes with a reflection on the US's standing in global financial markets and the need to consider the rest of the world's response to these economic shifts.
