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The case for Trump's tariffs
What will President-Elect Donald Trump’s election win mean for the US economy? After years of inflation and stagnating wage growth, millions of voters elected Trump off the back of his promise to usher in a “golden age of America.” Trump has vowed to raise tariffs, slash business regulation, and deport millions of undocumented immigrants, policies he says will put Americans first. But what will that mean practically for workers and consumers? On GZERO World, Ian Bremmer is joined by Oren Cass, the founder and chief economist of the conservative think tank American Compass, who thinks Trump’s tariff plan will be a step in the right direction. Many economists argue that Trump's tariff plans will raise consumer prices and spark a global trade war, but Cass argues they're a necessary correction that will incentivize domestic manufacturing, reduce the deficit, and counter China’s unfair trade practices.
“If you actually believe that making things in America matters, then we are going to have to find a way to put a thumb on the scale for getting more of that investment back here,” Cass explains, “And I think that's what a tariff can help do.”
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).
What Donald Trump's second term will mean for the US economy
Listen: Donald Trump has promised to fix what he calls a broken economy and usher in a “golden age of America.” He’s vowed to implement record tariffs, slash regulation, and deport millions of undocumented immigrants. But what will that mean practically for America’s economic future? On the GZERO World Podcast, Ian Bremmer is joined by Oren Cass, founder and chief economist at the conservative think tank American Compass, to discuss Trump’s economic agenda and why Cass believes it will help American workers and businesses in the long run. Mass deportations, he says, will lead to a tighter labor market that will force employers to raise wages and increase working conditions. He also argues that steep tariffs are the only way to level the playing field with China, which has “flouted any concept of a free market or fair trade” for decades. However, many economists warn that Trump’s plan will lead to rising inflation and a global trade war. So what’s the biggest argument for an America first economic agenda? Will it really lead to long-term benefits for workers? Oren Cass makes his case.
Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, Stitcher, or your preferred podcast platform, to receive new episodes as soon as they're published.
- The economic fallout of Trump’s tariff threats ›
- How Javier Milei is turning Argentina's economy around ›
- How Trump won – and what it means for the world ›
- Kamala Harris and Donald Trump’s economic plans, compared ›
- Trump's close call and the RNC: Brian Stelter and Nicole Hemmer weigh in on a historic week in US politics ›
How Trump's tariffs could help (or hurt) the US economy
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).
Trump wants to be the one to end the Ukraine war, but at what cost?
Donald Trump may not have returned to the White House yet, but he's already eyeing some early foreign policy wins. Chief among them is the war in Ukraine. On the latest episode of GZERO World with Ian Bremmer, New York Times national security correspondent David Sanger outlines just how keen Trump is to make a deal with Kyiv and Moscow.
Watch the full episode: Trump foreign policy in a MAGA, MAGA world
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).
Trump foreign policy in a MAGA, MAGA world
As Trump prepares to return to the White House, his foreign policy picks are already showing just how radically his presidency could reshape geopolitics. New York Times Correspondent David Sanger joins Ian Bremmer on GZERO World to discuss just what a Trump 2.0 foreign policy could look like for some of the key geopolitical flashpoints today. From the wars in Ukraine and the Middle East to the increasingly strained US-China relationship, the only thing we can say for sure is that the Trump sequel will look far different from the original.
And that uncertainty, Sanger tells Bremmer, is why Trump won the election. "If you voted for Donald Trump in the 2024 election, it was probably with a thought that these institutions need to be blown up." One of the biggest questions, however, is just how Trump will approach the Ukraine war, and if he'll follow through on his campaign pledge to end the conflict in "24 hours." "Trump would love to come in as the man who ended the Ukraine war" Sanger says, "But the only way I can imagine in my limited way for how you do that in 24 hours is you have a call of Vladimir Putin and you say, Vlad, what do you need?"
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).
How Trump 2.0 could reshape US foreign policy, with the New York Times' David Sanger
Listen: On January 20, 2025, Donald Trump will re-assume the most powerful office in the world amidst the global backdrop of two major wars, comparatively weaker US allies, more aggressive rogue states, and a more complex and competitive international architecture. On the GZERO World Podcast, Ian Bremmer sits down with New York Times national security and White House correspondent David Sanger to talk about what US foreign policy might look like under Trump 2.0.
"It's a Donald Trump administration," Sanger tells Bremmer, which means that ideological consistency is not the currency of the moment. Loyalty is the currency of the moment." Some of Trump's picks so far show how important loyalty is to him and also that he's no longer going to defer to any "adults" in the room. He wants a cabinet that empowers him rather than reining him in. Moreover, Sanger notes that Trump will be taking the reins of the world’s most powerful office with the full support of the Senate, House, and a deeply conservative Supreme Court. Oh, and those moderating guardrails—like Mattis and Kelly—from the first Trump term? Gone. In short order, the entire world will know what Trump unleashed looks like. Whether or not that's a good thing...only time will tell.
Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, Stitcher, or your preferred podcast platform, to receive new episodes as soon as they're published.
- Trump's close call and the RNC: Brian Stelter and Nicole Hemmer weigh in on a historic week in US politics ›
- Biden vs Trump foreign policy: Political scientist Stephen Walt weighs in ›
- Why voters went back to Trump, with Molly Ball and Nicole Hemmer ›
- Will Trump's criminal conviction ruin his campaign - or American democracy? Insights from Susan Glasser and Preet Bharara ›
- How the US election will change the world ›
Donald Trump on a throne spinning a globe on his finger.
How world leaders are preparing for Trump’s return
The global response to Donald Trump’s imminent return to power has been nothing short of remarkable.
From Israel's Benjamin Netanyahu hinting at a potential Lebanon cease-fire as a "gift" to the president-elect, to Ukraine's Volodymyr Zelensky saying the war will “end faster” under the incoming administration, to European and Asian leaders expressing Stockholm syndrome-levels of excitement to work with him, foreign leaders have been lining up to kiss the president-elect’s ring since his election victory two weeks ago.
To be sure, most US allies and adversaries still dislike and mistrust Trump. But with memories of the clashes, chaos, and unpredictability of his first term still fresh, they know that they get crosswise with Trump at their own peril. The president-elect still believes America is being taken for a ride, values are something other countries use to constrain US power, and allies are only as good as the money they spend on US goods and protection. And Trump is willing to flex Washington’s full military and economic muscle – whether in the form of high tariffs or the withdrawal of US security support – to extract gains from other nations.
World leaders are accordingly doing everything they can to avoid becoming a target of his wrath, using flattery and favor to appeal to Trump’s ego and transactional nature in the hopes of getting in his good graces. After all, they know Trump is nothing if not willing to sit down with anyone – whether a longstanding democratic ally or a brutal dictator – to try to cut a deal that makes him look good at home.
The upshot is that at least in the early days of his presidency, Donald Trump is poised to rack up far more foreign policy wins than many people appreciate. Not because he’s a “stable genius” or a particularly gifted negotiator, but because he’ll be running the world’s largest economy and most powerful military, with leverage over virtually every country and less aversion to wielding it than any US president that came before him.
But that’s table stakes for Trump. There are three reasons why his ability to get concessions from other countries and put points on the board early on will be greater than during his first term.
First, Trump is no longer isolated, with a growing number of world leaders eager to welcome him to the international arena. Eight years ago, the president-elect was an outlier, with few true friends on the global stage apart from Netanyahu, Gulf leaders, Hungary’s Viktor Orban, Japan’s Shinzo Abe, India’s Narendra Modi, and a handful of others. But things have changed since.
Italy's Giorgia Meloni, currently the most popular G7 leader, shares Trump's views on immigration, social policy, and economic nationalism. Argentina’s Javier Milei, the chainsaw-wielding “Trump of the Pampas,” was the first foreign leader to meet with him after the election. In Canada, the Conservative Party's Pierre Poilievre is poised to replace Prime Minister Justin Trudeau, promising a much more Trump-aligned relationship. Germany’s Olaf Scholz will likewise soon be replaced, probably by the opposition conservative Christian Democrat leader Friedrich Merz, a wealthy former businessman who is ideologically closer to the incoming American president. South Korean President Yoon Suk Yeol is strategically positioning himself to become the new Shinzo Abe, going as far as taking up golf again to establish a closer relationship with Trump. The list goes on.
Trump is no more a fan of multilateralism than he was eight years ago. He remains mistrustful of alliances and indifferent to other countries’ values and political systems. But whenever he attends gatherings of the G7, G20, and NATO now, the president-elect will at least be surrounded by like-minded leaders who will be much more receptive to his “America First” agenda and inclined to play by his rules.
Second, the world is much more dangerous than it was in 2017, raising the stakes of misalignment with Trump. Major wars raging in Europe and the Middle East, heightened US-China tensions, and a more fragile global economy make the costs of being on the wrong side of the president-elect exponentially higher than they were during Trump’s first term.
And third, Trump’s domestic political power is significantly more consolidated this time around. The president-elect has unified control of Congress and a pliant Republican Party, knows his way around Washington, DC, and is surrounding himself with far more ideologically aligned loyalists than in his first term. Gone are the institutionalist career staffers and establishment Republicans who often checked Trump’s most disruptive impulses. For world leaders, this means alternative backchannels to get around the president-elect’s foreign policy preferences won’t be nearly as available or effective. Whether or not they like it, it’s Trump’s way or the highway now.
It’s no wonder that we’re seeing so many countries preemptively bend the knee, desperate to find common ground with Trump before he takes office. China, for instance, is floating potential concessions to avert an economically destabilizing trade war, from organizing a Ukraine peace conference to buying US Treasuries and increasing purchases of American goods. Iran granted a meeting to Trump advisor-extraordinaire Elon Musk in an apparent effort to facilitate a de-escalatory deal. Taiwan’s leadership is planning a massive new American arms purchase offer to show Trump they’re serious about paying more for US protection. Meanwhile, Ukraine is not only expressing readiness to negotiate a cease-fire but is also weighing several sweeteners – including potential business deals, access to the country’s natural resources, and Ukrainian troop deployments to replace US forces in Europe after the war – to convince Trump that continued US support is in his personal and political interests.
None of this means that every effort to appease Trump will succeed, or that Trump’s mere presence in the White House will end every war, de-escalate every conflict, and resolve every disagreement. If history is any guide, most attempts to strike a lasting deal with the president-elect will fail. In the long run, his approach will erode America’s influence on the global stage, deepen the G-Zero vacuum of leadership, and make the world a more dangerous place.
In the near term, however, Trump’s penchant for bilateral deal-making, disregard for longstanding American norms and values, reputation for unpredictability, and unrestrained leadership of the world’s sole superpower will increase the odds of improbable breakthroughs.
Welcome to Trump’s international honeymoon – it may not last long, but at least nobody’s having any fun.
Great expectations, grave concerns
What to expect when you’re expecting Trump 2.0? Can he live up to the great expectations he set and alleviate the grave concerns? Let’s spell it out, in true T.R.U.M.P. style.
1. Tariffs and Taxes
Expectation: Donald Trump will quickly ratchet up his America First tariffs policy, potentially slapping 10% to 20% tariffs on all goods coming into the United States — and much higher duties on goods from China, especially cars. The bet is that this will stimulate job growth in the United States and stop the hollowing out of manufacturing caused by globalization and free trade. The Trump promise: Tariffs are “not going to be a cost to you, it’s a cost to another country.”
Concern: In reversing decades of Republican free trade policy, expansive tariffs will drive up the cost of goods for US consumers and increase inflation, as 16 Nobel prize-winning economists wrote in June. The Peterson Institute for International Economics — an independent nonprofit research group — wrote a paper arguing that Trump’s tariffs and tax cuts will push inflation up four points higher by 2026 than it would otherwise. Make America expensive again is one way to see it.
To counteract that, Trump will extend the major tax cuts which he put forward in 2017 and are set to expire next year. That will keep stimulating the economy alongside new tax cuts for corporations and individuals, but it won’t be enough to stop inflation. It also raises another concern: deficits.
According to studies like this one from Wharton, Trump’s deficits could reach between $3 and $7 trillion, up from $1.83 trillion today. “We project that conventionally estimated tax revenue falls by $5.8 trillion over the next 10 years, producing an equivalent amount of primary deficits. Accounting for economic feedback effects, primary deficits increase by $4.1 trillion over the same period,” the Wharton report says.
What will Trump do with big industrial policy programs like Biden’s Inflation Reduction Act, which so far has provided over $240 billion in spending and has earmarked another $60 billion for various green industries? Kill it and rescind all the unspent dollars. “To further defeat inflation,” he said recently, “my plan will terminate the Green New Deal, which I call the Green New Scam.” For the green tech world and industries like wind, solar, and even electric cars, this will be a major setback. There will be quick deregulation for oil and gas companies, and new and fast “drill, baby, drill” offshore leases will open up, along with more fracking and pipelines. Not all tax credits from the IRA will be removed, but support for buying EVs will. Expect this to be where Elon Musk makes a dramatic impact.
Prediction: Trump acts fast on some tariffs but not all. He will get a lot of internal pushback as members of his party worry that a series of international trade wars will be triggered, hammering their crucial exports and hurting their economies. Biden will scramble to get the Inflation Reduction Act money out the door, but I am already hearing reports that departments are freezing funds to prepare for the new administration.
2. Retaliation and Revolution
Expectation: With a strong mandate, Trump will have few checks and balances to stop him from taking action against those he has labeled “enemies of the people” or “the enemy within.” What’s more, Trump believes the Supreme Court has given the president total immunity from prosecution for actions undertaken as commander in chief.
An NPR investigation lays out over 100 threats that Trump has made in the last few years, ranging from prosecuting political opponents like President Joe Biden to taking away licenses from news outlets like CBS, NBC, and ABC.
Concern: Trump will try to dismantle what he calls the “Deep State” by reviving his infamous “Schedule F,” which would allow him to fire bureaucrats he doesn’t like and hire ones who agree with his policies.
Trump’s new team is much more experienced and ready than they were in 2016, and the agenda for a radical overhaul of the US government will be led by folks like Elon Musk and Robert F. Kennedy Jr. While there will be massive deregulation, the biggest concern will be a government that launches investigations into any group that challenges its policy.
Prediction: Mass layoffs in the federal government, overhauls of the Department of Education and the FBI, and legal challenges with multiple news organizations.
3. Ukraine
Expectation: While lame-duck Biden will try to get as much money and material to Ukraine before January, Trump will cut it off and try to force a peace. He promised to end the war within 24 hours and to do that he would have to force Ukraine to cede a massive amount of territory to Vladimir Putin.
Concern: NATO allies are in no shape to fill the US gap in aid. Without US assistance, Russia — now with the support of North Korean troops — will start to grab more land. How far will they go before they make a deal? That is up to Trump, but it is bad news for Ukraine.
Prediction: The war grinds on for a year, but eventually Ukraine — running low on equipment and money – will be forced to give up huge swaths of territory in the east. Putin has waited out the US and now has a sympathetic ear in the White House.
4. Mexican Border and the Middle East
On the Mexican border
Expectation: Trump will rapidly end birthright citizenship and begin a massive deportation program of up to 20 million people, which will require building detainment camps. Also, expect the so-called Muslim ban on certain countries to be revived from his first term.
Concern: Besides the key questions about the legality, morality, and practicality of mass deportations, there is the economic impact.
The American Immigration Council wrote a study saying that the deportation program would cost over $315 billion and be extremely difficult to manage. At the height of deportation efforts in recent US history, the country deported approximately half a million people in a single year — and most of those were turned away as they tried to cross, rather than being forced out of the country after they had settled. The long-term impacts of mass deportation on the US economy could add to a crisis. “Due to the loss of workers across U.S. industries, we found that mass deportation would reduce the U.S. gross domestic product (GDP) by 4.2 to 6.8 percent,” according to the AIC. “It would also result in significant reduction in tax revenues for the U.S. government. In 2022 alone, undocumented immigrant households paid $46.8 billion in federal taxes and $29.3 billion in state and local taxes. Undocumented immigrants also contributed $22.6 billion to Social Security and $5.7 billion to Medicare.”
Prediction: This is a core promise of the Trump 2.0 administration, and despite the fury this will cause, deportation programs will be set up quickly.
On the Middle East
Expectation: Trump is a strong supporter of the policies of Israeli Prime Minister Benjamin Netanyahu and his fight against Iran and proxies Hamas and Hezbollah. Trump will tell Bibi that he has a clear road ahead to finish the war — though what that means strategically remains unclear — but he will likely demand that the heavy fighting stop before the inauguration. Trump wants to fulfill his promise to end the war in Gaza and, in the process, defeat Iran’s Jihadist allies and ambitions.
Trump’s greatest foreign policy accomplishment in his first term was the Abraham Accords, in which both Bahrain and the United Arab Emirates recognized Israel’s sovereignty and established full diplomatic relations. Could his hard line on Iran build on this and turn the terrible war into a larger peace? That is the hope.
Concern: The biggest issue is that Trump’s unfettered support for Netanyahu will encourage Bibi to double down on his most aggressive strategic goals and undermine any possibility for a two-state solution by continuing massive bombardments in Gaza and Lebanon and by moving more settlers into the West Bank. It could trigger a major war with Iran and light up the entire region. It could also push the Iranians to finally build a nuclear bomb, which would incentivize the US to take military action.
Prediction: The war ends before Trump’s inauguration, but there is no plan for what comes next. Who governs Gaza or southern Lebanon? What is the plan for any rebuilding? What happens to the refugees? The hostages? The festering wounds of this bloody war are not going away soon, and expect ongoing protests in the US and around the world. Other terror groups, like the Houthis in Yemen, will continue to upend any attempt at peace. Worst-case scenario, the war on the battlefield turns into asymmetric terror attacks around the world. Things will get worse before they get better.
5. Pomp and Partisanship
Expectation: 2026 marks the 250th year of the great American experiment in democracy, and Trump has planned for a yearlong celebration that will include parades, a full-year US fair in Iowa, and multiple other events.
This will be the ultimate American and MAGA moment, twinning his remarkably resurrected political movement with the key US anniversary. The Trump dynasty will be tied to the American destiny.
Concern: This year would be celebrated by any president, so there is no over-concern in principle, but President-elect Trump is also the commander in chief of the culture war against what he calls wokeness. The culture war has animated his entire movement and its loudest proclaimer, Tucker Carlson. Expect these celebrations to reflect the administration’s values and to be strategically allied with the anti-woke messaging that has been so divisive across the country.
Prediction: Great parties in places like Iowa, increased tourism, and probably a military parade in Washington, which Trump has always wanted — but also big controversy. In a country where athletes quietly kneeling during the singing of the national anthem before a football game can become a major battle in the culture wars, there is a real risk that partisan politics will turn a year of unity into one of deep divisions. Let’s hope not.