In this episode of Trumponomics, Stephanie Flanders interviews Richard Baldwin about his new book, "The Great Trade Hack," which analyzes Donald Trump's approach to international trade. Baldwin argues that Trump's trade policies, driven by a "grievance doctrine," are economically incoherent and will fail to achieve their objectives of redressing the trade balance, reindustrializing America, or helping the middle class. The conversation explores the potential consequences of US protectionism, including retaliation from other countries and the fragmentation of the global trading system. Baldwin suggests that the US is entering a period of permanent protectionism and a post-American leadership era, where the rest of the world may need to re-globalize without the US. He advises other countries to negotiate with the US, offer Trump headline-grabbing wins, and defend the rules-based system by following the rules themselves.
