Economist David Wessel talks about Trump's plans on tariffs and tax cuts, and the potential economic impact of Elon Musk and Vivek Ramaswamy's Department of Government Efficiency. Maureen Corrigan reviews Niall Williams' novel, Time of the Child. Learn more about sponsor message choices: podcastchoices.com/adchoices NPR Privacy Policy
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I'm Dave Davies.
In his presidential campaign, Donald Trump promised sweeping changes, high tariffs, big tax cuts, mass deportations of undocumented immigrants and deep spending cuts guided by his friends Elon Musk and Vivek Ramaswamy.
If anyone thought Trump might pause after his win, take a few weeks to consider his cabinet choices and plot a phase in of his policy moves, they were mistaken.
Trump quickly announced a host of high level appointments, some quite controversial.
And then three days before Thanksgiving, he declared that on day one of his administration he'd impose 25% tariffs on goods from Mexico and Canada to remain in effect until they cracked down on illegal immigration and drug trafficking in into the US that prompted a visit to Mar a Lago from Canadian Prime Minister Justin Trudeau and a phone call with Mexican President Claudia Sheinbaum.
Trump also chose an economic policy team, including treasury secretary nominee Scott Besant, a Wall street veteran who's not only supported Democrats in the past, but as recently as 2015 was Chief Investment officer for George Soros, a figure widely reviled by conservatives.
For a look at what all this means in the second Trump administration, we turn to David Wessel, a senior fellow in economic studies at the Brookings Institution and director of its Hutchins center on Fiscal and Monetary Policy.
Wessel spent three decades at the Wall Street Journal.
He shared two Pulitzer Prizes for journalism, one at the Journal and the other at the Boston Globe, and has written three books on economic issues.
We recorded our conversation.
Well, David Wessel, welcome back to FRESH air.
Good to be with you.
I want to talk about tariffs for a moment.
You know, this idea that he can raise tariffs on other countries and get results, you know, kind of hails back to the mercantilism of a few centuries ago, like when the British Empire would get cheap raw goods from other countries and then manufacture stuff.
You know, you manage trade policy to benefit your own industries.
And his notion is that if we raise enough tariffs, manufacturers will eventually decide they need to locate in the United States to avoid them.
And I'm interested in your view on how realistic that is.