The discussion centers on the legality and economic effects of tariffs imposed during the Trump administration. They explain that many of these tariffs were justified under the International Emergency Economic Powers Act (IEEPA) and Section 232, both of which require either national security concerns or an economic emergency. They also address Trump’s justification of tariffs based on the U.S. trade deficit, noting that the U.S. has had a consistent trade deficit since the 1970s and that it does not represent an economic emergency.
The conversation then shifts to inflation. They compare U.S. inflation under Biden with inflation trends in Europe and other advanced economies. They observe that the global inflation spike after COVID was largely due to supply chain disruptions, not solely U.S. fiscal policy. While the Biden administration’s pandemic relief spending may have contributed slightly to higher inflation, inflation subsequently fell sharply without recession, which they interpret as a favorable policy outcome.
