Summary of Why The Trump Tariffs Will Fail
In this episode of the Remnant podcast, host Jonah Goldberg and trade expert Scott Lindum discuss the implications of the recent tariffs imposed by the Trump administration and argue that these tariffs are likely to fail. Lindum humorously reflects on how he wished for more attention to trade issues, only to find himself overwhelmed with work due to the current political climate.
The conversation begins with an analysis of the significant increase in tariffs—ten times those in place before Trump took office—implemented under questionable legal justifications. Lindum critiques Trump's simplistic view of trade deficits as losses, explaining that economists do not view trade balances as scorecards. Instead, trade deficits are influenced by complex macroeconomic factors, including savings and investment patterns, which are not solely dictated by trade policy.
Lindum emphasizes that tariffs are a minor factor in determining trade balances and that the administration's approach to tariffs reflects a misunderstanding of international trade dynamics. He highlights that trade deficits can occur even when countries engage in beneficial trade relationships, using the example of the U.S. trade deficit with Canada due to favorable oil pricing.
The discussion also touches on the broader implications of Trump's trade policies, which Lindum argues lack a coherent strategy. He points out that while tariffs may be politically appealing, they often lead to economic uncertainty and can harm U.S. competitiveness in the long run. Lindum advocates for free trade agreements as a more effective means of addressing trade barriers, contrasting this with the current administration's tariff-centric approach.
Lindum and Goldberg explore the political allure of protectionism, noting that tariffs allow politicians to engage in favoritism, which can distort market dynamics. They conclude that the current trade policy is not only economically flawed but also detrimental to U.S. foreign relations, as it undermines the credibility of the U.S. as a reliable trading partner.
Overall, the podcast critiques the simplistic and counterproductive nature of the Trump administration's tariffs, advocating for a return to more traditional trade practices that prioritize free trade agreements over unilateral tariffs.
Presenters/Contributors:
- Jonah Goldberg (Host)
- Scott Lindum (Trade Expert)
Notable Quotes
— 00:10 — « I've been making a joke for a very long time that one day he found a monkey paw, picked it up and made a wish and said 'I just wish people cared about my issues more...' »
— 01:12 — « I rubbed the genie and I just asked 'I wish I were popular.' And little did I know what the genie would do. »
— 03:10 — « It's kind of like an ER doctor; it's kind of good that you're not busy. »
— 04:10 — « It's not like Trump is putting a permanent cap on everything; it's just you know attacks on imports. »
— 42:00 — « If you're in the middle of a heat wave and one day after another it just gets hotter and hotter and hotter, and then someone tells you, 'Well, you know today it only got two degrees hotter rather than five degrees hotter,' it's still freaking hot. »
Category
News and Commentary