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Why It Matters

We’ve Been Looking At Trade All Wrong

Why It Matters

Council on Foreign Relations

News

4.2876 Ratings

🗓️ 19 March 2025

⏱️ 33 minutes

🧾️ Download transcript

Summary

There was once a broad consensus in Washington that trade was a force for good—a way to connect, grow, and prosper. But today, trade has evolved into something much bigger than just the exchange of goods. It’s become a powerful tool to rewrite the rules of foreign policy, reshape how the United States is viewed by the rest of the world, and steer us toward an increasingly uncertain future. When did this change begin, and where did we go off course?   This season, Why It Matters is taking you through the ins and outs of trade. In this episode, we’re diving into the history books to learn what can the past tell us about the future of U.S. trade policy.   Featured Guest   Edward Alden, senior fellow specializing in U.S. economic competitiveness, trade, and immigration policy   For an episode transcript and show notes, visit us at https://www.cfr.org/podcasts/weve-been-looking-trade-all-wrong

Transcript

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0:00.0

I want to make them an office cavern.

0:05.3

I'll trade you.

0:06.9

Lesson number one.

0:09.7

Don't underestimate the other guy's greed.

0:16.7

Lately, trade has been a huge topic of discussion,

0:24.8

propelling it from a boardroom, on the hill, in the weeds issue, to a hot-button front-page debate.

0:30.3

We're launching a trade war, and it's going to affect us.

0:33.5

Suddenly, the American public is privy to everything, from tariffs.

0:38.3

What started with Washington's tariff hikes on steel and aluminum is now a harbinger of a trade war

0:44.3

that could...

0:45.3

Two supply shortages.

0:46.3

...cancify drug shortages and limit medical device makers.

0:50.3

Two international partnerships.

0:52.3

And to be honest, when you, Canada only works as a state.

0:55.0

It doesn't, we don't need anything they have.

0:57.0

In times like these, people look to academic institutions,

1:01.0

government officials, and foreign policy organizations

1:04.0

to know the norms and rules of the game,

1:07.0

and how to trade with countries around the world,

1:09.0

using the guidelines we created.

1:11.6

But what if everything we thought we agreed on about trade is no longer effective?

1:18.6

What if, in this new world, a consensus in Washington no longer exists?

...

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