"We've lost enormous credibility around the world" because of tariffs - Summers
On GZERO World with Ian Bremmer, economist Larry Summers slams the Trump administration’s trade war as “the worst, most consequential, self-inflicted wound in US economic policy since the Second World War.” He says there’s still time to limit the damage—if the tariffs are walked back quickly—but warns that the global fallout is already underway. “Even in the best imaginable place, we have lost enormous credibility in the world,” Summers says, adding that the unpredictability rattles everything from debt markets to US alliances.
When Bremmer asks what the Trump administration is actually trying to accomplish, Summers is at a loss. "I don't see this as a rational way of either pursuing the objective of strengthening US manufacturing or the objective of reducing other countries' trade barriers." And the damage, Summers adds, will be extensive and long-lasting.
"We have lost enormous credibility in the world. We've created a large uncertainty premium about what we're going to do next, and we're going to be seen as a less reliable country...this kind of truculence does not go unnoticed, and it is not immediately forgotten."
Watch full episode: Larry Summers: Trump's trade war the "worst self-inflicted wound since WWII"
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
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