Tariffs Tariffs Tariffs

Photo by Yoav Aziz on Unsplash

In this episode of the Matters podcast, Dr. Ajay Chhibber discusses the concept of the 'great dismantling,' attributed to the actions of U.S. President Trump, who is actively dismantling the global order established post-World War II. Trump views global trade as unfair to the U.S. and has weaponized tariffs not only for trade but also for political reasons such as curbing immigration and drug influx. Dr. Chibber explains the potential escalation into full-scale tariff wars reminiscent of past conflicts like Smoot-Hawley, emphasizing the risks of such measures leading to global economic downturns. He notes the historical context of tariff wars, the adverse impact on global trade, and the uncertainty this situation creates for businesses and policymakers. Dr. Chhibber also discusses how these actions prompt countries to seek new trade alliances and agreements to counterbalance U.S. measures. There is a discussion on India's high tariffs and its efforts to negotiate trade deals with the U.S. to avert further conflicts. The podcast concludes with a note on the unpredictable future of these tariff wars and their broad economic implications.