What’s the future of global trade?
The Economics Show Podcast
Trump's tariffs are an outdated tool that won't work in today's global economy, according to economist Richard Baldwin. The use of tariffs to address trade imbalances is a relic of the past, as the modern global economy is far more complex and interconnected than in previous eras.
While Trump's protectionist policies may resonate with some domestic voters, they risk causing significant harm to the broader global trading system. By imposing unilateral tariffs and disrupting established trade relationships, the U.S. could trigger retaliatory actions from other countries, leading to a damaging trade war that benefits no one.
As a result, other nations must carefully consider how to respond to Trump's trade policies. Rather than engaging in tit-for-tat tariff escalations, these countries may need to pursue more nuanced diplomatic and economic strategies to maintain the integrity of the global trading system and protect their own economic interests.