The Commentary Magazine Podcast: "Car Talk" – Detailed Summary

Episode Information

• Title: Car Talk
• Release Date: March 27, 2025
• Host: Commentary Magazine
• Participants: John Podhoretz (Editor), Abe Greenwald (Executive Editor), Matthew Continetti (Washington Commentary Columnist), Christine Rosen (Social Commentary Columnist)

1. Introduction to Tariff Announcement

Timestamp: 01:10 – 05:15

The episode kicks off with a significant focus on recent economic developments. Donald Trump announced a 25% tariff on auto parts and automobiles imported into the United States, set to take effect the following week.

Abe Greenwald highlights the shift from Trump's earlier, country-specific tariffs (e.g., Japan, China) to this broader, product-specific approach targeting the auto industry—a major sector, being the third or fourth largest in the U.S. economy. He emphasizes the inflationary impact, especially on average consumers who must purchase increasingly expensive vehicles.

“...anything that makes them more expensive is inflationary and regressively inflationary, since it will hit people who buy cars who have less money and more money, unless this then drives them into the secondary market...”
– Abe Greenwald at [04:10]

2. Impact on the Automotive Market and Inflation

Timestamp: 05:15 – 11:25

John Podhoretz notes that approximately 50% of new cars sold in the U.S. would be subject to the new tariffs, even if assembled domestically with parts sourced internationally. This includes major manufacturers like Volvo, potentially pushing consumers toward more expensive used cars, exacerbating inflation.

Christine Rosen points out an exception within the U.S.-Mexico Trade Agreement, where certain auto parts from Mexico remain exempt. However, she agrees that overall prices for both new and used cars are likely to rise due to the increased costs.

“...there is an unfortunate... the law of supply and demand means ... the American product won't get more expensive also because of the laws of supply and demand.”
– Abe Greenwald at [20:10]

3. Trump’s Trade Policy Strategy

Timestamp: 11:25 – 22:40

The discussion delves into Trump’s broader trade strategy, where tariffs serve as leverage to entice foreign companies to invest in the U.S. Instead of a blanket application, the tariffs are used selectively to stimulate domestic production.

John Podhoretz suggests that Trump's approach may include negotiating with automakers to build new factories in states like Ohio or Tennessee to avoid tariffs, subsequently celebrating these as policy victories.

“...the tariff threat is a means of leverage to get foreign auto companies to come to Trump and say, hey, you know what? In order to avoid the tariff, we want to build a new factory in Ohio.”
– John Podhoretz at [11:49]

Abe Greenwald critiques the long-term economic feasibility, questioning whether the tariffs will genuinely lead to increased domestic manufacturing or merely cause short-term disruptions and consumer pain.

“...problem is getting from 2025 to 2035. That's the YADA yada yada problem...”
– Abe Greenwald at [15:52]

4. Economic and Political Implications

Timestamp: 22:40 – 31:48

The panel examines the potential repercussions of the tariffs on the U.S. economy and the Republican Party's evolving base. Abe Greenwald raises concerns about increased inflation disproportionately affecting the working class, who may already feel the strain from economic shifts.

John Podhoretz acknowledges Trump's love for foreign direct investment and suggests that tariffs might be a strategic tool to encourage companies to relocate to the U.S., thereby garnering political capital.

“...this would lead to the policy outcome I would like, an American attack on Iran... you want to have a private Secretary of State... It's all going to be a Big show.”
– John Podhoretz at [41:12]

Christine Rosen highlights the confusion in messaging from the White House, juxtaposing national security justifications with assurances that the economy won't suffer, leading to market uncertainty.

“...the message coming out of the White House is it's confusing, which is leading to confusion in the markets too.”
– Christine Rosen at [14:44]

5. Historical Comparisons and Future Outlook

Timestamp: 31:48 – 47:21

The conversation draws parallels between the current tariff strategy and past trade conflicts, such as the Harley Davidson tariff war. Matthew Continetti and Christine Rosen discuss how previous tariff impositions led to mixed outcomes, often disadvantaging the intended beneficiaries.

Abe Greenwald warns of the broader economic implications, including potential disruptions in the housing market and stock fluctuations. He emphasizes the difficulty in achieving desired long-term economic stabilization amidst such policies.

“...unless the overall income growth outpaces the rise in prices attributed to Trump tariffs, then it's a major problem for Trump and the Republicans.”
– John Podhoretz at [22:40]

6. Administration’s Handling and Public Perception

Timestamp: 47:21 – 58:33

The panel transitions to discussing internal administrative challenges and public perception issues, particularly surrounding Social Security and other welfare programs. They critique officials like Howard Lutnick for being out of touch with average Americans’ understanding of Social Security.

Christine Rosen underscores the critical importance of Social Security to voters, noting that any perceived threats to its stability could undermine Republican support.

“...a 70 year old person who does not have any money can. The only people who say they need their Social Security payments are scammers.”
– Christine Rosen at [54:35]

John Podhoretz argues that the administration's handling of these issues, coupled with mixed messaging, could erode trust among key voter demographics.

“...the mysteries and scandals coming from this administration don't involve the president. And it's just such a weird state...”
– John Podhoretz at [34:13]

7. Conclusion and Sidetracks

Timestamp: 58:33 – End

The latter part of the episode shifts focus to cultural commentary, specifically a Broadway production of Othello starring Denzel Washington and Jake Gyllenhaal. While insightful, this segment diverges from the primary discussion on tariffs and trade policy.

Abe Greenwald critiques Washington’s portrayal of Othello, suggesting it lacks the necessary gravitas for the character, thereby diminishing the play’s tragic impact.

“...He plays Iago as a kind of bro. He is mostly sort of physical. ... it's fundamentally a bad interpretation.”
– Abe Greenwald at [63:58]

John Podhoretz humorously recommends watching a baseball game, wrapping up the episode on a lighter note.

Key Takeaways

1. Trump's 25% Auto Tariff: A strategic move targeting the auto industry to boost domestic manufacturing but potentially leading to increased consumer prices and inflation.

2. Economic Impact: Significant tariffs on major sectors like automobiles could have long-term inflationary effects, disproportionately affecting the working class.

3. Political Strategy: Tariffs serve as leverage to attract foreign investment, reinforcing Trump's image as a champion of American workers while navigating ambiguous policy implementations.

4. Administration Challenges: Mixed messaging and perceived disconnect from average Americans on critical issues like Social Security could undermine Republican support.

5. Historical Parallels: Lessons from past trade wars indicate that broad tariffs may not yield the intended economic benefits and can result in unintended consequences.

6. Cultural Diversion: The episode concludes with a critique of a Broadway production, illustrating the podcast's breadth but signaling a departure from the main economic discussion.

Notable Quotes:

• Abe Greenwald at [04:10]: “Anything that makes them more expensive is inflationary and regressively inflationary, since it will hit people who buy cars who have less money and more money...”

• John Podhoretz at [11:49]: “...the tariff threat is a means of leverage to get foreign auto companies to come to Trump and say, hey, you know what? In order to avoid the tariff, we want to build a new factory in Ohio.”

• Christine Rosen at [14:44]: “The message coming out of the White House is it's confusing, which is leading to confusion in the markets too.”

This comprehensive summary encapsulates the primary discussions on trade policies, economic implications, political strategies, and internal administration challenges, providing a clear overview for listeners and non-listeners alike.