Scott Lincicome: How Much Will You Pay To 'Buy American'?

Just Asking Questions

How much are you willing to pay to "buy American"? Just asking questions.

In April, President Donald Trump unilaterally unleashed a series of so-called reciprocal tariffs, using emergency powers to punish countries with a trade imbalance, meaning they export more to the U.S. than they import from the U.S.

Markets panicked, and Trump pulled back, setting a new deadline that he's now pushed back multiple times. It's now set to expire on August 1.

But those aren't the only tariffs Trump has implemented, and there are some signs they may be already driving up prices. The administration says the stock market is strong, tariffs are bringing in billions in revenue, and American manufacturing is back, baby.

To help us figure out what tariffs might do to the U.S. economy, analyze how Trump is using trade as a foreign policy tool, and discuss the ultimate political aims of economic nationalism is Scott Lincicome. He's vice president of general economics at the Cato Institute and writes the Capitolism newsletter at The Dispatch.

Chapters:

00:00—What are the current tariff levels?

02:21—Examples of tariff carve-outs

14:20—Political dynamics of tariffs

19:01—Tariff impacts on consumers

33:32—Tariffs as a foreign policy tool

34:00—Can tariffs lead to freer trade?

36:24—How tariffs affect foreign exporters

37:21—Global trade agreements excluding the U.S.

38:27—Trump's Brazil tariff threats

40:34—Consumer goods and tariff costs

52:30—Tariffs and price increase

57:06—Treasury revenue from tariffs

59:58—Tax cuts vs. tariff hikes

01:01:14—Tariffs as a regressive tax

01:05:19—Are tariffs less harmful than feared?

01:16:03—Manufacturing and tariff challenges

01:19:45—Economic growth and tariff effects

Mentioned in the podcast:

Bureau of Labor Statistics Consumer Price Index for June 2025

Trading Economics: United States Core Inflation Rate

"Wholesale prices are flat in June, PPI shows, and point to muted effect of tariffs on inflation," by Jeffry Bartash at MarketWatch

"US customs duties top $100 billion for first time in a fiscal year," by David Lawder

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