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The Indicator from Planet Money

Trump's contradictory trade policies

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 18 December 2024

⏱️ 10 minutes

🧾️ Download transcript

Summary

President-elect Donald Trump has called for a weaker dollar given it would be good for American exporters. But tariffs, a staple of his economic policy, would actually strengthen the dollar. Today on the show, we explain tariffs and currencies by following one bag manufacturer from New Jersey.

Related episodes:
How Trump's tariffs plan might work (Apple / Spotify)
Worst. Tariffs. Ever. (update) (Apple / Spotify)

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Transcript

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0:00.0

NPR.

0:11.7

President-elect Donald Trump wants to have more stuff made in America.

0:16.5

And to do this, I'm sure you've heard, he's promising more tariffs.

0:20.7

I think tariffs are the most beautiful word.

0:22.6

I think they're beautiful.

0:23.6

It's going to make us rich.

0:25.2

Tariffs are taxed on imported cars, barbecues, laptops, fridges.

0:29.2

I mean, really anything.

0:30.6

And the idea is to protect American companies from overseas competition.

0:35.1

Trump has also, at times, demanded a weaker dollar because a weak

0:39.8

dollar is good for American exporters. It means people overseas can more easily afford

0:45.2

stuff from the US. Now, on the surface, these make sense, right? You've got two policies that

0:50.2

help make things in America. Well, not really. There is one problem with this plan.

0:56.2

Tariffs actually strengthen the dollar.

1:00.4

This is the indicator from Planet Money.

1:02.5

I'm Waylon Wong.

1:03.7

And I'm Darien Woods.

1:04.9

Today on the show, we explain tariffs and currencies

1:07.5

through the story of one bag manufacturer from New Jersey.

1:11.7

And we look at how its experience illustrates how Trump's goals are contradictory.

1:22.7

This message comes from Wise, the app for doing things in other currencies.

1:27.6

Send, spend, or receive money internationally, and always get the real-time mid-market exchange rate with no hidden fees.

...

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