Fareed Zakaria

We can be a little generous here. Let's let everyone grow and we'll do fine in the process. And of course, the data is overwhelming. Yes, Europe and Japan and South Korea and places like that grew, but the United States absolutely dominated the world. Because it's a classic, positive sum game.

We can be a little generous here. Let's let everyone grow and we'll do fine in the process. And of course, the data is overwhelming. Yes, Europe and Japan and South Korea and places like that grew, but the United States absolutely dominated the world. Because it's a classic, positive sum game.

We created a much larger global economy, much larger trading system, huge capital flows, and we were at the center of it. The dollar was the reserve currency of the world, which alone gives us incredible advantages. You know, we're the only country that doesn't have to worry that much about debt and deficits because we know that at the end of the day, the dollar is the reserve currency.

We created a much larger global economy, much larger trading system, huge capital flows, and we were at the center of it. The dollar was the reserve currency of the world, which alone gives us incredible advantages. You know, we're the only country that doesn't have to worry that much about debt and deficits because we know that at the end of the day, the dollar is the reserve currency.

And my feeling is if you take that system and say, OK, we're going to look at each bilateral relationship and see if we can squeeze this country for a slightly better deal, you probably will get a better deal. But two things will happen. The first thing is you will end up fracturing your alliances because the people with whom you have the most leverage are your allies.

And my feeling is if you take that system and say, OK, we're going to look at each bilateral relationship and see if we can squeeze this country for a slightly better deal, you probably will get a better deal. But two things will happen. The first thing is you will end up fracturing your alliances because the people with whom you have the most leverage are your allies.

We have more leverage with Canada than we have with Russia because Canada depends on us for security. Canada trades with us a lot. Its economy is intricately tied to the U.S. economy. So you can bully Canada. You can't really bully Russia that much because we don't do much trade with them. You can't bully China. It's another vast continental economy that can survive just fine.

We have more leverage with Canada than we have with Russia because Canada depends on us for security. Canada trades with us a lot. Its economy is intricately tied to the U.S. economy. So you can bully Canada. You can't really bully Russia that much because we don't do much trade with them. You can't bully China. It's another vast continental economy that can survive just fine.

So the result of Trump inaction, the Trump doctrine inaction, has been a war on America's allies. But the second more important part is, yeah, you'll gain a little bit here and there by getting slightly better tariff deals. And just so people understand, tariffs in the industrialized world are around 3%. They're very, very low. So the idea, you know, we're not getting penalized in any large ways.

So the result of Trump inaction, the Trump doctrine inaction, has been a war on America's allies. But the second more important part is, yeah, you'll gain a little bit here and there by getting slightly better tariff deals. And just so people understand, tariffs in the industrialized world are around 3%. They're very, very low. So the idea, you know, we're not getting penalized in any large ways.

You can cherry pick a few examples to the contrary, but mostly among the liberal democratic states of the world, it's a free trade war. But what you will do by squeezing each of these individual countries, humiliating them, making them, forcing them to accept renegotiation of terms,

You can cherry pick a few examples to the contrary, but mostly among the liberal democratic states of the world, it's a free trade war. But what you will do by squeezing each of these individual countries, humiliating them, making them, forcing them to accept renegotiation of terms,

You lose the kind of relationships that you had built over eight decades that created this extraordinary anchor of stability in the world, which was the Western alliance. And, you know, the gains are not that great.

You lose the kind of relationships that you had built over eight decades that created this extraordinary anchor of stability in the world, which was the Western alliance. And, you know, the gains are not that great.

So there are two things I think are going on. One is, as I said, Trump, if he has a worldview, he's a protectionist. He's always felt that, you know, you want to protect American industries. The foreigners come in and they take advantage of us, et cetera, et cetera. The second, I think, and this I think he discovered as president – The president has incredible power in the area of tariffs.

So there are two things I think are going on. One is, as I said, Trump, if he has a worldview, he's a protectionist. He's always felt that, you know, you want to protect American industries. The foreigners come in and they take advantage of us, et cetera, et cetera. The second, I think, and this I think he discovered as president – The president has incredible power in the area of tariffs.

Technically, it's meant to be Congress that imposes tariffs, but long ago, Congress delegated that power to the president. And I think Trump loves that. It is an extraordinary unilateral exercise of huge American power, the power of the American market to say, I will just block you from being able to participate in the American market. And you saw him do that in the case of the Colombian president.

Technically, it's meant to be Congress that imposes tariffs, but long ago, Congress delegated that power to the president. And I think Trump loves that. It is an extraordinary unilateral exercise of huge American power, the power of the American market to say, I will just block you from being able to participate in the American market. And you saw him do that in the case of the Colombian president.

So I think he's not sure. At one hand, he loves wielding this weapon. On the other hand, he is something of a protectionist. But as you say, he notices that markets don't seem to like it. So where will it all end up? My gut is that what happens is tariffs in the industrialized world, as I said, have roughly been about 3%.

So I think he's not sure. At one hand, he loves wielding this weapon. On the other hand, he is something of a protectionist. But as you say, he notices that markets don't seem to like it. So where will it all end up? My gut is that what happens is tariffs in the industrialized world, as I said, have roughly been about 3%.