This episode explores the impact of President Trump's tariffs on the global economy. Against the backdrop of Trump's long-held belief in tariffs and his rhetoric about unfair trade practices, the interview delves into the potential consequences of his actions. More significantly, the discussion examines whether a reversal of these tariffs would lead to a quick market recovery, concluding that the uncertainty created would likely persist. The guest, Zanny Minton Beddoes, editor-in-chief of The Economist, highlights two potential motivations behind the tariffs: reindustrializing the U.S. and using them as negotiating tools. For instance, she points out the inherent conflict between lowering taxes and simultaneously imposing tariffs, which act as taxes on consumers. She further emphasizes the historical context of tariffs, citing the negative impacts of both the McKinley tariffs and the Smoot-Hawley tariffs. Ultimately, Beddoes argues that Trump's approach is misguided, potentially damaging the U.S. economy and its global relationships, and advocates for focusing on the U.S.'s strengths in technology and innovation instead.
