This Econ 102 podcast episode interviews economist Noah Smith about the potential economic consequences of President Trump's tariffs. The discussion begins with Erik Torenberg's concern about a possible recession and then delves into Smith's analysis of the tariffs' impact on US trade with Canada and Mexico, contrasting it with the earlier tariffs on China. Smith argues that the broad application of tariffs on key trading partners, coupled with policy uncertainty, is severely harming investment and potentially leading to a recession, unlike the previous rounds of tariffs. He dismisses optimistic counterarguments as "hopium" and highlights the negative impact on American businesses' access to global markets and the potential for stagflation. The interview concludes with a discussion on the broader societal implications of nationalism versus globalization and the role of faith and community in American society.
