"Trump’s Trade War w/ Canada Is Just Getting Started!" | International Tariff Expert: Edward Fishman

The Nature of Economic Warfare

Fishman opens the discussion by referencing Sun Tzu's famous quote about the supreme art of war being to subdue the enemy without fighting. He posits that in today's world, the ultimate battlefield may not be military but economic. He emphasizes that the U.S. has been engaging in economic warfare through various means, including weaponized tariffs and sanctions, which can have significant ripple effects on global trade and international relations.

Tariffs and Their Implications

The conversation shifts to the recent tariffs imposed by the Trump administration on both allies and adversaries. Fishman expresses concern that while tariffs can be a useful tool for protecting strategic industries, applying them indiscriminately can lead to unintended consequences. He highlights the risks of creating an autarkic economy, where reliance on domestic production leads to higher prices and slower economic growth. Moreover, he warns that when states cannot acquire markets and resources through open trade, the temptation to resort to military conflict increases.

Fishman discusses the need for the U.S. to create a situation where it is not vulnerable to supply chain disruptions from countries like China. He argues that incentivizing domestic manufacturing of strategic goods, such as semiconductors and electric vehicles, is essential for national security. The Chips Act, which allocates $50 billion to boost semiconductor production in the U.S., is cited as a positive step in this direction.

The Risks of Tariffs on Allies

The discussion also touches on the potential strategic errors of imposing tariffs on allies like Canada and Mexico. Fishman argues that such actions can undermine long-term relationships and create uncertainty for companies that rely on cross-border supply chains. He expresses concern that if the U.S. continues to wield tariffs against its friends, it may lead to a loss of confidence in American economic leadership.

The Role of China and Russia

As tensions rise between the U.S. and China, Fishman emphasizes the importance of understanding the geopolitical competition at play. He notes that while tariffs on China may be justified, applying similar measures to allies could backfire. The conversation highlights the need for a coherent strategy that balances economic interests with national security concerns.

Fishman also discusses the ongoing conflict in Ukraine and the implications of U.S. support for the country. He argues that the U.S. should leverage its economic power to support Ukraine while also ensuring that it does not inadvertently empower adversaries like Russia. The conversation raises questions about the effectiveness of sanctions and the need for a more robust approach to economic warfare.

The Future of Economic Warfare

Fishman warns that the landscape of economic warfare is evolving, with countries like China and Russia strengthening their capabilities. He emphasizes the need for the U.S. to adapt its strategies to remain competitive. The discussion touches on the potential for digital currencies and cryptocurrencies to disrupt traditional financial systems, raising questions about how these developments could impact economic warfare.

Fishman expresses concern that the U.S. may be falling behind in the race for digital currencies, particularly as China advances its own Central Bank Digital Currency. He argues that the U.S. must take proactive steps to ensure that it retains its economic leverage in a rapidly changing global landscape.

The Importance of Transparency and Accountability

Throughout the conversation, Fishman underscores the importance of transparency and accountability in government. He advocates for a more streamlined approach to economic warfare, suggesting that the U.S. government should be better organized to respond to global challenges. He believes that a more effective economic warfare strategy would involve collaboration between various government agencies and a focus on long-term goals.