US President Donald Trump’s 2025 tariff blitz has failed as a viable economic strategy, according to Richard Baldwin’s new book “The Great Trade Hack”. Instead, it was driven by grievance politics, with tariffs serving as political placebos that won’t fix the US economy but could disrupt global trade.
Baldwin argues that tariffs are an ineffective solution and can actually harm the global system. He presents three possible futures for world trade: collapse, stagnation, or a new era of cooperation. Baldwin urges global leaders to work together to defend the rules-based system, which can thrive even if leaders step up.
The future of global trade hangs in the balance as the world moves forward without US tariffs. With the right leadership, the system can not only survive but also flourish.
Source: https://cepr.org/publications/books-and-reports/great-trade-hack-how-trumps-trade-war-fails-and-global-trade-moves