Episode 69 - Tariff breakdown: the good, the bad and the funny
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Episode 69 - Tariff breakdown: the good, the bad and the funny
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In this episode, I try to offer my slightly alternative (and hopefully refreshing) take on tariffs, blending my economics background with the insights from some of the smartest thinkers of our time.
I discuss key measures enacted by President Trump regarding tariffs, including a 25% tariff on imports from Canada and Mexico—with a special 10% rate on Canadian energy products—a 10% tariff on Chinese goods that led to retaliatory tariffs, and a 25% duty on steel and aluminum along with a new reciprocal tariff system.
While these policies aim to protect domestic industries and create jobs, they may result in higher prices for consumers. David Ricardo’s theory of comparative advantage explains how protectionism can distort market efficiency.
However, insights from figures like Peter Thiel and Naval Ravikant take this tariff issue one layer deeper, inspiring me to rethink whether the traditional Ricardian dogma is still applicable in this day and age.