“Other countries, meanwhile, as if we needed another reminder that incentives matter, other countries have been turning away from the United States and toward each other.”
One year after "Liberation Day," U.S. tariffs have hit their highest rate since 1939 — yet the economy hasn't collapsed, largely because the U.S. is big enough to absorb the damage. The real casualty is certainty: small business owners are cutting staff and abandoning multi-year plans, domestic steel now costs more than twice the global price, and while other nations sprint toward new trade agreements with each other, U.S. deals remain legally unenforceable and riddled with ambiguity. University of Chicago economist Matt Notowidigdo delivers the episode's sharpest take — tariffs haven't brought back manufacturing jobs, and the policy uncertainty has been more paralyzing than the tariffs themselves. If you make decisions that depend on supply chains, input costs, or consumer spending, this one-year audit tells you exactly where the pain is concentrated and why it isn't going away.
Kai Rizdall opens the show, setting the stage by reminding listeners that the economy continues despite other news, and introduces the main topic: the year-long impact of President Trump's tariffs.
“The economy doesn't just stop.”
This quote serves as a fundamental reminder that economic activity and forces are continuous and transcend daily news cycles, emphasizing resilience and ongoing momentum.
“Other countries, meanwhile, as if we needed another reminder that incentives matter, other countries have been turning away from the United States and toward each other.”
It highlights how economic incentives fundamentally shape international relations and trade policies, leading to significant shifts in global alliances.