Ali Velshi: Trump’s new tariff threat ‘isn’t the way’ to change global trade

Donald Trump's use of tariffs as a diplomatic tool in global trade is being criticized as a 'sledgehammer' approach rather than a nuanced negotiation tactic. The podcast discusses Trump's tariff threats against BRICS nations if they shift away from the US dollar, his trade disputes with Canada and Mexico, and the unusual actions of corporations to influence Trump's agenda. Ultimately, the speaker believes Trump's approach is harmful, and corporations are making a mistake by prioritizing favor with the administration over their core principles.

Trump's Tariff Threats

• 00:00:07 Donald Trump has threatened to impose steep tariffs on BRICS countries if they move away from the US dollar, including Brazil, Russia, India, China, and South Africa. This comes after Trump's trade disputes with Canada and Mexico, where he threatened tariffs on goods. This tactic is seen as a way to leverage influence in global trade, but the speaker doesn't believe it's a sound economic or diplomatic strategy.

BRICS & Dollar

• 00:01:27 The BRICS group of nations, formed in 2005-2006, has been discussing shifting away from the US dollar for trade. This discussion is driven partly by Russia's desire to avoid US dollar dominance in its operations. Trump's tariff threat on BRICS is an attempt to maintain the US dollar's global importance but is considered unlikely to be effective.

Corporate Influence on Trump

• 00:03:39 Corporations are actively trying to influence Trump's agenda, engaging in unorthodox lobbying efforts. This includes attempts to secure appearances on podcasts, purchasing Trump's cryptocurrency token, and providing advice to potential administration figures. This behavior is viewed as 'bending the knee' and prioritizing deregulation over their own principles.

Corporations' Loss of Trust

• 00:05:47 The speaker expresses concerns about the long-term consequences of corporations prioritizing favor with the Trump administration. This is concerning as businesses are increasingly trusted over government, and this action undermines that trust. This prioritizing of deregulation and tax benefits over core principles may ultimately harm employee and customer relationships.

Economic Impact of Policies

• 00:07:00 Trump's policies, including mass deportation and trade tariffs, are predicted to have negative consequences on the economy. Specifically, deportation of undocumented workers could harm agriculture, construction, and the housing market. The speaker compares the potential impact of such policies to a 25% tariff on various countries, cautioning about the wide-ranging economic risks.