Podcast Summary: The Ben Shapiro Show - Ep. 2174: WHAT COMES NEXT?! Trump’s Tariff War Continues…

Release Date: April 7, 2025
Host: Ben Shapiro
Platform: The Daily Wire

Introduction to the Episode

In Episode 2174 of The Ben Shapiro Show, host Ben Shapiro delves deep into the escalating tariff war initiated by former President Donald Trump, analyzing its implications on the U.S. economy, global trade relations, and market stability. The episode offers a comprehensive critique of the administration's tariff policies, incorporating insights from key economic figures and assessing the broader geopolitical ramifications.

Market Reactions and Economic Impact

Ben Shapiro opens the discussion by highlighting the severe market downturn following Trump's announcement of the new tariff regime, referred to as “Liberation Day.”

• Ben Shapiro [00:00]: "U.S. stocks lost $6.6 trillion in value during that two-day washout after President Trump announced that giant tariff regime that he called Liberation Day."

Shapiro emphasizes the immediate adverse effects on global markets, citing significant drops in major indices and the triggering of circuit breakers in Japan's Nikkei 225.

• Ben Shapiro [00:45]: "Bitcoin and oil prices fell sharply as well."

The episode underscores the uncertainty and chaos traders face, with many betting on continued volatility due to unclear objectives behind the tariffs.

Business Leaders' Perspectives

The show features a critical examination of responses from influential business figures, particularly investor Bill Ackman.

• Bill Ackman [Major Statement]: "The President has elevated the tariff issue to the most important geopolitical issue in the world and he's gotten everyone's attention...If, on the other hand, on April 9, we launch economic nuclear war in every country in the world, business investment will grind to a halt."

Shapiro interprets Ackman's stance as a plea for Trump to reconsider the current tariff strategy to avoid long-term economic damage.

• Shapiro [04:30]: "This is why Bill Ackman, investor extraordinaire and ally to President Trump, put out a statement...may cooler heads prevail."

Administration's Internal Debate

A significant portion of the episode is dedicated to internal conflicts within the Trump administration regarding tariff implementation.

• Commerce Secretary Howard Lutnick [16:33]: "The tariffs are coming. He announced that and he wasn't kidding. The tariffs are coming. Of course they are."

Contrastingly, Treasury Secretary Scott Besant offers a glimmer of hope for potential negotiations.

• Treasury Secretary Scott Besant [19:33]: "More than 50 countries have approached the administration about lowering their non-tariff trade barriers...This is an adjustment process."

Shapiro critiques the lack of a unified strategy, pointing out inconsistencies between Lutnick's hardline approach and Besant's openness to negotiation.

President Trump's Position and Rhetoric

The host examines Trump's public statements and their impact on both domestic and international perceptions.

• Donald Trump [10:27]: "I think you have to take medicine to fix something...We're bringing back jobs and businesses like never before."

Shapiro argues that Trump's rhetoric signals a commitment to long-term tariffs, which exacerbates market fears of prolonged economic pain.

• Shapiro [10:55]: "Now that sounds like he wants long-term tariffs...if you tariff everyone, everyone including China, you know what all the other countries do?"

Market Analysts and Economic Forecasts

Shapiro brings in expert opinions to forecast the potential consequences of sustained tariffs.

• Bruce Kasman, JP Morgan [36:50]: "The tariff shock will likely be magnified by its effects on sentiment and through potential disruptions to global supply chains."

• Larry Summers [38:12]: "I think it's almost inevitable. This is the biggest self-inflicted wound we've put on our economy in history."

These insights reinforce the narrative that the tariff war may be steering the U.S. economy toward a recession, with significant losses projected for both corporations and consumers.

Legal Challenges and Policy Critiques

The episode touches upon the legal vulnerabilities of the tariff policies under the International Emergency Economic Powers Act.

• Ben Shapiro [49:05]: "I don't understand how it is possibly covered under the International Emergency Economic Powers Act...it seems difficult to suggest that you should be able to declare a national emergency based on trade deficits."

Shapiro casts doubt on the sustainability and legality of Trump's tariff strategy, suggesting potential judicial pushback.

Geopolitical Ramifications and Alliances

Shapiro discusses how the tariffs are affecting U.S. relationships with key global partners and alternative trade alliances.

• Patricia Kim, Brookings Institute [No Timestamp]: "The tariff shock gives US partners in the Indo-Pacific region an urgent need to hedge away from the United States. They're going to be looking toward each other and toward China."

He warns that alienating trade partners like Vietnam and Israel could inadvertently bolster China's economic influence, undermining U.S. strategic interests.

Public and Political Reactions

The host highlights the political fallout and public sentiment surrounding Trump's tariff policies.

• Hakeem Jeffries [47:34]: "The Trump tariffs are likely to result in thousands of dollars in additional costs on the American people in terms of groceries and gas and goods."

Jeffries positions the tariffs as detrimental to American consumers, aligning with Democratic critiques.

Shapiro counters by emphasizing the inconsistent messaging and the administration's focus on policies that may not align with broader economic well-being.

Conclusion and Final Thoughts

Ben Shapiro concludes the episode by urging for a reconsideration of the current tariff strategy, advocating for a more balanced approach that leverages negotiations to achieve zero tariffs where possible.

• Shapiro [48:46]: "I agree with Elon Musk that the off-ramp should be zero tariffs. Get to that off-ramp. If President Trump uses leverage to get there, great. He did the thing."

He stresses the importance of clear communication and strategic policy implementation to mitigate economic fallout and restore market confidence.

Key Takeaways

• Economic Uncertainty: Trump's tariff policies have triggered significant market volatility and raised fears of an impending recession.

• Internal Administration Conflict: Divergent views within the Trump administration between hardline tariff advocates and those seeking negotiation avenues.

• Legal and Strategic Concerns: Potential legal challenges to the tariff regime and concerns over the lack of a clear, sustainable economic strategy.

• Geopolitical Impact: Risk of alienating key trade partners, inadvertently strengthening China's economic position.

• Political Fallout: Increased criticism from Democrats and business leaders urging a reevaluation of the current tariff approach to prevent long-term economic harm.

Notable Quotes:

• Bill Ackman [04:30]: "Business is a confidence game and confidence depends on trust...We're in the process of destroying confidence in our country as a trading partner."

• Howard Lutnick [16:33]: "The tariffs are coming. He announced that and he wasn't kidding."

• Scott Besant [19:33]: "More than 50 countries have approached the administration about lowering their non-tariff trade barriers."

• Larry Summers [38:12]: "This is the biggest self-inflicted wound we've put on our economy in history."

• Hakeem Jeffries [47:34]: "Donald Trump is driving us toward a recession."

This episode of The Ben Shapiro Show provides a critical examination of the Trump administration's tariff policies, highlighting the complex interplay between economic strategy, market reactions, and geopolitical dynamics. Shapiro's analysis underscores the need for a more transparent and negotiated approach to tariffs to safeguard the U.S. economy and maintain strategic international alliances.