Trump's Tariffs & The Radical Remaking Of The Global Economy
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Why are Trump’s tariffs considered high drama?
This is Fresh Air. I'm Terry Gross. I follow the news pretty carefully, but it used to be that when I'd come across an article about tariffs or free trade, I'd give myself permission to skip over it. I assumed it might be boring and that I wouldn't understand it even if I read it. But now, now, Trump's tariffs are high drama. They've upended world markets, and it feels essential to understand their impact on the U.S. and the global economy, how they might have a long-term effect on U.S. relations with our allies and adversaries, and how they'll affect consumer prices and our savings.
How do Trump's tariffs affect the global economy?
Here to help me and you better understand what's happening is a journalist who's been covering economic issues for years and recently returned from a reporting trip to China. Zannie Minton-Beddoes is the editor-in-chief of The Economist. She previously was the magazine's business editor and economics editor and is a former economist for the International Monetary Fund. We recorded our interview yesterday morning. Trump's tariffs went into effect at midnight, and this afternoon, as I record this introduction, he's put a 90-day pause on most of the tariffs, but not China's. But who knows what will happen later today? Our interview is about the context and possible consequences of the tariffs, so it will be helpful in understanding the news, whatever twists and turns the story takes. Zannie Minton-Biddles, welcome back to Fresh Air. Thank you for having me.
If Trump were to say, oops, my mistake, I didn't intend my beautiful tariffs to tank the global economy, let's call the whole thing off and put things back exactly like they were, would the markets likely recover quickly, even if he did that?
I'm sure there would be a recovery rally, but I don't think the uncertainty that he's created would go away. I think we've crossed some kind of a Rubicon in the last week or so, and we're not going to go back to the world as it was before. What do you mean by that?
What are the potential long-term impacts of these tariffs?
Well, you know, President Trump has for decades said that he believes in tariffs and he has said that he feels that the global trading system is unfair to America. It's a very long held belief of his. So this whole tariff action of the last week hasn't kind of come out of nowhere. He really believes this. And it's part of a broader sense from this administration that it wants to radically remake the rules of global security, geopolitics, economics. And so even if, and I don't think he would do this, but even if he did what you suggest and said, oops, this was all a terrible mistake. Who's to say that he won't change his mind next week or the week after or in six months? And you can really only go on the best evidence, which is what President Trump has been saying over years and decades. And that is that he believes, wrongly in my view, but he believes that the global trading system is... doesn't work for America. And he believes that it needs radical change. And I think since he's been saying that for such a long time, we have to believe him.
And so I don't think that there will be a fundamental shift. I think there will be negotiations with certain countries. I think the markets will affect his calculus. But I don't think we can suddenly kind of wish away what's happened and go back to the world that we had before, quote, unquote, Liberation Day.
You said that terrorists are something that Trump has believed in for a long time. And he recently said that America is being, quote, looted, pillaged, raped and plundered by nations near and far. What's your take on that high drama description?
I think that this view of the world that President Trump has is at a big picture level fundamentally wrong. The U.S. is the most successful economy in the world, is the richest economy in the world. And broadly, the global trading system has hugely benefited the U.S. Now, that's not to say that there are not certain countries that are not obeying the letter of the global trading system.
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Chapters
7 chapters
1
Why are Trump’s tariffs considered high drama?
0:24–1:02
2
How do Trump's tariffs affect the global economy?
1:02–2:31
3
What are the potential long-term impacts of these tariffs?
2:31–5:35
4
Are Trump's tariffs a negotiating tool or a permanent strategy?
5:35–9:12
5
How are U.S. consumers impacted by tariff policies?
9:12–16:49
6
How are other countries reacting to the U.S. tariffs?
16:49–21:27
7
What does a tariff war between the U.S. and China look like?
21:27–43:39
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