Legal AF by MeidasTouch – Episode Summary: "China Smacks Down Trump with Trade War Response"

Release Date: March 4, 2025

Hosts:

• Michael Popak – National Trial Lawyer Strategist
• Karen Friedman Agnifilo – Former Chief Assistant District Attorney, Manhattan DA's Office
• Ben Meiselas – Founder and Civil Rights Lawyer, MeidasTouch Network

Introduction

In the March 4, 2025 episode of Legal AF, hosts Michael Popak, Karen Friedman Agnifilo, and Ben Meiselas delve into the escalating trade war between the United States and China. The discussion centers around the origins, developments, and far-reaching consequences of the trade tensions initiated under former President Donald Trump's administration.

Origins of the US-China Trade War

Michael Popak begins by characterizing the ongoing trade conflict as an "act of war" that disproportionately affects American consumers. He attributes the initiation of the trade war to Donald Trump's economic policies aimed at fostering American prosperity through aggressive tariffs on Chinese imports.

Michael Popak [02:30]: "Every independent economist has said this trade war with China, which has broadened as of today, will actually be an indirect tax on the American consumer, up to $1,200 a year, the largest tax increase in our history."

Popak critiques Trump's approach, asserting that the trade measures were not as effective as claimed and have instead led to significant economic strain within the United States.

Impact on American Consumers

The hosts discuss the substantial financial burden the trade war imposes on American households. According to Popak, tariffs have effectively raised the cost of goods, creating a "tax" on consumers that hampers their purchasing power.

Michael Popak [04:15]: "There’s no ferry. Somebody's gotta pay the tariff and it ends up being the American consumer."

This sentiment echoes Warren Buffett’s recent statement on the matter, emphasizing that the economic fallout is borne by the average American rather than the intended target.

Consequences for American Agriculture

A significant portion of the discussion focuses on the repercussions for American farmers. The escalation from a 3% to a 39% tariff on Chinese imports has severely impacted the agriculture sector, which relies heavily on exporting products like wheat, corn, and poultry to China.

Michael Popak [05:45]: "China is the number one trading partner for the Midwest and our farm community."

The Chinese government’s retaliatory measures have forced American farmers to grapple with finding new markets for their produce, threatening the sustainability of their operations.

Case Study: Skydio

To illustrate the broader impact of the trade war, Popak cites the example of Skydio, an American drone manufacturer critical to military and emergency services. China has placed Skydio on a restricted list, preventing access to essential materials like semiconductors and rare earth minerals.

Michael Popak [07:20]: "Skydio is now one of the 15 companies that China has put on a list that they are not allowed to obtain any of the materials they need to build their high tech devices from China."

This action not only hampers technological advancement but also poses national security risks by limiting the availability of crucial military technology.

Chinese Response and Strategic Moves

The episode highlights China’s strategic responses beyond mere tariffs. Popak points out that China is strengthening trading relationships with other nations in South America and central regions to circumvent the U.S. sanctions.

Michael Popak [09:10]: "China and Canada get China, Canada and Mexico all get closer together at Canada."

This maneuvering undermines multilateral trade systems and weakens the economic foundation between China and the U.S., deepening global economic divisions.

Broader Economic Implications

The discussion extends to the overall health of the American economy, criticizing the administration's handling of economic indicators such as the stock market and consumer confidence.

Michael Popak [10:05]: "The American consumer is so allergic to Donald Trump's policies and so fearful of what it's going to do to their pocketbook and their kitchen table issues that their consumer confidence has plummeted."

Popak argues that the deteriorating consumer confidence is leading to reduced spending, which in turn stifles economic growth and exacerbates fears of stagflation or a recession.

Cybersecurity and National Defense Concerns

Further concerns are raised about national security, particularly regarding cybersecurity measures. Popak accuses the Trump administration of neglecting defensive strategies against Chinese and Russian cyber threats by removing key cybersecurity experts from the federal government.

Michael Popak [10:50]: "If I didn't know better, I would think Donald Trump is working for the Chinese and the Russians."

This alleged negligence not only compromises the integrity of critical infrastructure but also leaves the U.S. vulnerable to foreign cyber attacks.

Conclusion and Future Outlook

Wrapping up the episode, Michael Popak emphasizes the detrimental effects of the trade war on various sectors of the American economy and warns of the long-term consequences if the current trajectory continues.

Michael Popak [11:00]: "Don’t talk about it anymore... All of his policies have been rejected by the economy and the American consumer."

He reiterates the importance of rebuilding trade relationships and restoring consumer confidence to rejuvenate the American economic engine.

Additional Information

• Legal AF YouTube Channel Launch: The episode concludes with an announcement about the new Legal AF YouTube channel, encouraging listeners to subscribe for more content at the intersection of law and politics.

Michael Popak [11:15]: "Help us build this pro democracy channel where I'll be curating the top stories. Go to YouTube now and free subscribe at Legal AFMTN."

Key Takeaways:

• The US-China trade war, initiated under Trump, adversely affects American consumers and farmers.
• China's retaliatory tariffs have broader implications on national security and technological advancements.
• The erosion of multilateral trade relationships weakens the global economic standing of the United States.
• Declining consumer confidence poses significant risks to economic stability and growth.
• National security is compromised through inadequate cybersecurity measures against foreign threats.

Notable Quotes:

1. Michael Popak [02:30]:

   "Every independent economist has said this trade war with China, which has broadened as of today, will actually be an indirect tax on the American consumer, up to $1,200 a year, the largest tax increase in our history."

2. Chinese Finance Minister [Referenced, 06:10]:

   "The US is unilateral tariff increase damages the multilateral trading system, increases the burden on US Companies and consumers and undermines the foundation of economic and trade cooperation between China and, and the U.S."

3. Michael Popak [10:05]:

   "The American consumer is so allergic to Donald Trump's policies... that their consumer confidence has plummeted."

Final Thoughts

This episode of Legal AF offers a critical examination of the US-China trade war, highlighting the unintended economic and geopolitical ramifications of heightened tariffs and strained international relations. Through detailed analysis and poignant commentary, the hosts underscore the urgent need for policy reassessment to mitigate the adverse effects on American society and its standing in the global economy.