US trade policy under the Trump administration has been a subject of debate among experts. Instead of forming alliances with its allies to counterbalance Chinese influence, the US has chosen to target both friend and foe with large tariffs. This approach has significant implications for global trade.
Brad Setser, a Council on Foreign Relations expert, joins us to discuss the effects of these tariffs on the US economy and the world at large.
Setser explains that the current path is not ideal, as it can lead to retaliatory measures from other countries and disrupt global supply chains. He notes that the US has been reliant on imports, particularly from China, which could be severely impacted by the tariffs.
The potential damage from these tariffs includes reduced economic growth, higher prices for consumers, and increased tensions between the US and its trading partners. However, there may be some positive outcomes, such as increased domestic production and a shift towards more self-sufficient industries.
Source: https://www.bloomberg.com/news/articles/2025-04-05/brad-setser-cfr-on-the-damage-from-trump-s-tariffs