Raging Moderates with Scott Galloway and Jessica Tarlov
The Price of Trump’s Trade War
Tue, 08 Apr 2025
Scott and Jessica break down Trump’s sweeping new trade war that’s tanking the markets, Elon Musk’s rumored White House exit after a rocky tenure as Trump’s government efficiency czar, and a fiery 25-hour speech from Senator Cory Booker that’s lighting a fire under Democrats — and may signal a new chapter in the resistance. Follow Jessica Tarlov, @JessicaTarlov. Follow Prof G, @profgalloway. Learn more about your ad choices. Visit podcastchoices.com/adchoices
What are the implications of Trump's new tariffs?
The S&P 500 entered bear market territory on Monday, and tech giants, including Apple and Nvidia, were hit hard. On top of that, Jess, a separate 25% tariff on foreign-made cars also took effect Thursday. The Fed warns this could fuel inflation, and a Yale study estimates it'll cost the average U.S. household over $2,000 a year, with low-income families hit hardest. That's usually U.S.
economic policy. Congress is now pushing back. with a bipartisan bill to limit the president's power to impose tariffs without approval. Jess, Trump has urged patience. That's the party line, that somehow he's playing 40 chest and we should just wait and we're taking some pain, but the pain will be worth it.
However, China's slapping on a 34% retaliatory tariff and the EU gearing up for its own responses. Are we officially, do you think, in a full-blown trade war?
It feels – I mean, I'm looking forward to listening to your markets coverage again. With that, I thought you guys did a great job on that episode that came out this morning. It feels like someone formally has to declare that, someone more important than me as I'm only the HHS secretary. But it feels like we're inching further.
And this level of whiplash is not comfortable for anyone but the true, true, truest of believers. And it seems like even some of those people are just not having it anymore. You kind of see top Trump defenders from the finance community, like Bill Ackman, has been having a meltdown on social media for the last few days.
He's going after Lutnik, which I find that part pretty amusing in all of this. But you have people like Stan Druckenmiller, who... tweeted, I guess this is not a regular occurrence for him, that he does not support tariffs in excess of 10 percent.
The Wall Street Journal wrote an article even about the fact that he had a tiny tweet just to say that people are taking his words out of context when he talked about the potential benefits of tariffs. And I mean, there was
So many reactions to this that I've I found interesting, but one in particular was the Singaporean prime minister who did a direct to camera two and a half, three minute speech about what's going on here and how this is a total shake up to the global order and that this is not so bad for Singapore at this particular moment, but as a country that relies heavily on trade.
that they know now that we are entering a new, what is it, arbitrary and protectionist phase, that America is not a reliable partner. And he brought up the fact that when we did have a trade war in the 1930s, we ended up in armed conflict leading to World War II, which was a pretty scary forecasting to be hearing in all of this. And
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