4.6 • 11K Ratings
🗓️ 5 February 2025
⏱️ 79 minutes
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0:00.0 | From New York Times opinion, this is the Ezra Klein Show. Over the weekend, President Donald Trump announced 25% tariffs on Mexico and Canada. |
0:37.4 | The markets reacted with shock. |
0:39.7 | We were really doing this. Didn't Trump's Wall Street backers tell us again and again this was all |
0:44.9 | just a negotiating ploy? And then Mexico said that it would add 10,000 troops to the border. |
0:50.8 | And Canada said it would appoint a fentanyl czar, and they noted efforts they were already making on the border. And Trump said it would appoint a fentanylzar, and they noted efforts they were already |
0:55.1 | making on the border. And Trump delayed the tariffs by a month in both cases. So how to read this? |
1:02.0 | Did Trump back down in the face of market turmoil? Did he get what he wanted, even though what he got |
1:07.2 | wasn't very much, was mostly things that Mexico and Canada were already doing? Are we going to |
1:12.3 | have this happen again in a month and maybe every month after that? I don't think anybody actually |
1:17.2 | knows, very much including Donald Trump. What seems clear here is that Trump likes tariffs, but he dislikes |
1:23.9 | political pain. He wants to be seen as in control. He wants the world bending |
1:28.4 | to his will. But the stock market plummeting does not make it look like the world is bending |
1:33.1 | to his will. The stock market plummeting threatens his control. And so when other countries see that, |
1:39.1 | their strategy is going to come clearer. The more Trump bullies other nations, the more they will |
1:43.8 | band together in retaliation. And the more that will batter clearer. The more Trump bullies other nations, the more they will ban together in retaliation, |
1:45.5 | and the more that will batter markets. The world does not want to be endlessly pushed around by Donald |
1:51.0 | Trump. Actions create reactions. So yeah, Trump has the power to impose tariffs, but he does not have the |
1:57.2 | power to impose them without paying a price. And so far, at least, he does not seem to |
2:01.6 | want to pay that price. Domestically, Elon Musk is trying to remake the federal government. |
2:07.9 | I was going to say by Fiat, but it's not even by anything as official as that. His people have |
2:13.5 | pushed their way into the Treasury Department's payment systems, putting the longtime civil servant in charge of that system on leave when he wouldn't give a bunch of Musk's deputies access to a system that, and I really think it's important to understand this, a system that virtually nobody even in the Treasury Department is access to, because it contains so much private data, because it presents such severe cybersecurity risks, |
2:36.5 | and because something going wrong in it would throw government payments into complete chaos. |
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