About this Video

• Video Title: The Price of Trump’s Trade War | Raging Moderates
• Channel: The Prof G Pod – Scott Galloway
• Speakers: Scott Galloway, Jessica Tarlov
• Duration: 01:12:07

Introduction

This episode of Raging Moderates discusses the economic impact of President Trump's sweeping tariffs on imported goods. Galloway and Tarlov analyze the market reactions, potential for a full-blown trade war, and the broader implications for the American economy and global trade relations. They also discuss the political ramifications and potential responses from other countries.

Key Takeaways

• Trump's tariffs triggered significant market turmoil: The Dow experienced its largest back-to-back losses since the start of the pandemic, and the S&P 500 entered bear market territory. A Yale study estimates the tariffs will cost the average US household over $2,000 annually.
• Bipartisan pushback against Trump's tariff powers: Congress is working on a bill to limit the president's authority to impose tariffs without approval, indicating widespread concern about the economic consequences.
• Global trade war concerns: China's retaliatory tariffs and the EU's potential responses raise fears of a full-blown trade war, potentially destabilizing the global economy. The Singaporean prime minister's speech highlights the severity of the situation and the potential for long-term damage to global trade relations.
• Economic consequences far-reaching: The tariffs disproportionately affect small businesses reliant on cheap imports, potentially leading to job losses and economic downturn. The argument that only the wealthy are impacted is refuted.
• Political implications: The tariffs are seen as a major political risk, with even some Trump supporters expressing concern. The discussion includes the potential impact on the upcoming elections.

Galloway argues that the Dow and NASDAQ are poor metrics for measuring overall American prosperity because they create an illusion of success while ignoring other crucial indicators like declining life expectancy, increasing childhood obesity and anxiety. He states that these indexes are indicators or signals, but people mistakenly equate their performance with the overall well-being of the nation.