Trump Tariffs Could Have Little or No Effect on U.S. Trade Deficit, Professor Says

The video discusses the impact of tariffs on the US trade deficit, explaining that imposing tariffs on Chinese goods may not reduce the deficit as expected. Instead, it could shift trade to other countries like Japan and Korea. The discussion highlights the potential for a broader trade war and the challenges faced by multilateral trade agreements like the WTO. The video emphasizes the unintended consequences of tariffs, such as increased costs for US firms and consumers, and the redistribution of trade opportunities to other markets.

What are the two main reasons provided for why tariffs may not reduce the US trade deficit?

How do tariffs on steel and car parts affect US consumers' purchasing behavior?

What unintended consequences might arise from the US imposing tariffs on other countries?

Discuss the potential impact of Trump's trade policies on multilateral trade agreements.

In what ways have the institutions governing trade agreements been effective over the past 70 years?