WSJ What’s News: U.S. Tariffs Test Allies’ Trust Episode Release Date: March 5, 2025

In this episode of WSJ What’s News, host Alex Osola delves into the pressing issues surrounding U.S. tariffs, the proposed federal cryptocurrency reserve, the challenges of mining in Greenland, and emerging trends in high school education. The episode features insightful discussions with senior market columnist James McIntosh, crypto and tech policy expert Amrith Ramkumar, and European security reporter Sune Rasmussen. Below is a detailed summary capturing the key points, discussions, insights, and conclusions from the episode.

1. U.S. Tariffs and Their Impact on Allied Trust

Introduction to Tariff Developments: The episode opens with Alex Osola discussing President Trump's decision to grant a one-month exemption to automakers from the newly imposed 25% tariffs on goods from Canada and Mexico. This exemption applies to major automakers like Ford, General Motors, and Stellantis, aiming to mitigate immediate economic impacts.

Discussion with James McIntosh: Osola introduces James McIntosh, a senior markets columnist, to explore the broader implications of these tariffs on U.S. allies.

• Erosion of Trust Among Allies: McIntosh explains, “The fact that the first big tariffs are on the US closest trading partners, Canada and Mexico is for them a real shock. [00:46]”

  He further elaborates on the implications:

  “If they can't rely on the President's own trade deals, who in future is going to be willing to rely on new trade deals that the US might agree or old existing trade deals? It makes it a very untrusting world.” [02:02]

• Perception of American Reliability: McIntosh highlights the growing skepticism:

  “People start to say, well hang on, can we really trust America?” [02:02]

• Protectionism Trends: Addressing whether this signifies a return to protectionism, McIntosh responds:

  “People who've been following trade closely would argue that actually, Biden showed clear protectionism. He continued many of the Trump policies. ... But yes, this is a moment when people start to say, well hang on, can we really trust America?” [02:52]

• Long-Term Consequences: McIntosh warns about the unpredictable nature of U.S. trade policies:

  “Companies aren't going to be saying we can build our cross border supply chains reliant on this new deal the way they did after, for example, Trump renegotiated NAFTA in his first term. Now I think companies would be very cautious about doing that because even with that deal he was quite happy to find another excuse and impose the tariffs.” [03:23]

Market Reactions: Following the discussion, Osola reports on the market’s positive response to the tariff exemptions. Stock indices saw significant gains:

• Nasdaq: +1.5%
• S&P 500 and Dow: +1.1% each
• Carmakers: Ford (+5.25%), General Motors (+7%), Stellantis (+9%)

2. President Trump’s Proposal for a Federal Cryptocurrency Reserve

Introduction to the Crypto Reserve: Osola shifts the focus to President Trump's announcement of establishing a federal cryptocurrency reserve, slated to be discussed further at a White House industry summit on Friday.

Interview with Amrith Ramkumar: Amrith Ramkumar, a specialist in crypto and tech policy, provides an in-depth analysis of the proposed reserve.

• Source of Cryptocurrencies for the Reserve: Ramkumar highlights the ambiguity surrounding the reserve's funding:

  “...he did not specify whether there would be new purchases or if this would just be holding on to cryptocurrencies that have already been seized from criminals.” [04:54]

  He emphasizes the differing impacts:

  • New Purchases:

    “...buying new cryptocurrencies...making the industry more legitimate. It has all these ripple effects and investors think it's super bullish for crypto.”

  • Existing Holdings:

    “...holding on to what you already have, that's much less exciting...” [05:46]

• Types of Cryptocurrencies Considered: Ramkumar outlines the selected cryptocurrencies:

  “...the main cryptocurrency that everyone knows about is bitcoin. ... ether is another widely traded cryptocurrency... but then there are three much smaller, more volatile currencies, xrp, Solana, and Cardano...” [05:50]

• Industry Reception: He discusses the mixed reactions within the crypto community:

  “A lot of people don't like the idea of crypto or bitcoin reserve, particularly if there are new purchases being made with taxpayer money.” [06:53]

  Ramkumar contrasts crypto with traditional commodities:

  “...bitcoin and crypto are not like oil or gold or these other commodities that are strategically held.”

  Yet, proponents argue:

  “...it could attract more crypto activity to the U.S., support the dollar, and serve as a hedge.” [06:53]

Conclusion of the Segment: Osola thanks Ramkumar for his insights, highlighting the ongoing debates and uncertainties surrounding the federal cryptocurrency reserve.

3. Challenges of Mining in Greenland

Introduction to Greenland’s Mineral Wealth: Osola introduces the segment on Greenland’s vast reserves of critical minerals, essential for national interests, particularly rare earth metals.

Interview with Sune Rasmussen: Sune Rasmussen, covering European security, explains the complexities of mining in Greenland.

• Geographical and Logistical Challenges: Rasmussen outlines the environmental hurdles:

  “80% of the island is covered by ice. Most of the mining locations are above the Arctic Circle, and shipping is treacherous...logistically very difficult.” [08:48]

• Lack of Local Exploration Tradition: Comparing to regions like Canada and Alaska, he notes:

  “Greenland doesn't have a history of local companies doing exploration. So if you invest in mining in Greenland, you run a greater risk.” [09:32]

• Geopolitical Significance of Minerals: The strategic importance of Greenland’s minerals is emphasized:

  “China completely dominates the global market for rare earths and other minerals...controlling about 94% of the production of magnets, which is the main thing that these rare earths are used for.” [09:37]

  Rasmussen underscores the economic and strategic potential:

  “Access to rare earths in Greenland could help the west break this dominance that China wields over rare earths globally.” [10:31]

Conclusion of the Segment: Osola wraps up the discussion with Rasmussen, highlighting the significant but challenging prospects of mining in Greenland.

4. Additional News Highlights

Military Deportation Flights Halted: Osola reports that the Trump administration has ceased using military aircraft to deport migrants to Guantanamo Bay or other countries. Defense officials indicated that the last such flight occurred on March 1, with no flights scheduled in the next 48 hours. There is potential for this pause to become permanent due to the high costs and inefficiencies associated with military deportations.

Supreme Court Ruling on Foreign Aid: The U.S. Supreme Court has lifted a pause on foreign aid payouts, rejecting the Trump administration's emergency request. Consequently, the administration must comply with a lower court's order to pay nearly $2 billion to contractors for already performed work.

Rise of Shop Classes in High Schools: Osola highlights a growing trend in U.S. education where manual skills are gaining popularity over traditional academic classes.

Interview with Ta Ping Chen: Ta Ping Chen discusses the surge in enrollment in architecture, construction, and manufacturing courses in Wisconsin, noting a 10-13% increase in student participation.

• Reasons for Increased Interest: Chen attributes this trend to:

  • The rising cost of college education
  • Reevaluation of the four-year college path as the sole viable option
  • High employment rates for graduates in roles that do not require a college degree

  “There is a sense that the four year path, which for many years was presented to students as really the only path, might not make the most financial sense.” [12:05]

  She emphasizes the shift towards alternative education paths that better align with students' financial and career goals.

Conclusion of the Segment: Osola encourages listeners to tune into the Your Money Briefing podcast for a deeper dive into these educational trends.

Final Remarks

Alex Osola concludes the episode by acknowledging the contributors and producers, emphasizing the comprehensive coverage provided to keep listeners informed on critical global and economic developments. The episode underscores the intricate balance between U.S. domestic policies and their far-reaching implications on international trust and economic stability.

Notable Quotes:

• James McIntosh on Trust:

  “If they can't rely on the President's own trade deals, who in future is going to be willing to rely on new trade deals that the US might agree or old existing trade deals?” [02:02]

• Amrith Ramkumar on Crypto Reserve Components:

  “The president on Sunday hastily tweeted out which cryptocurrencies would be included in the reserve. But he did not specify whether there would be new purchases or if this would just be holding on to cryptocurrencies that have already been seized from criminals.” [04:54]

• Sune Rasmussen on Geopolitical Importance:

  “Access to rare earths in Greenland could help the west break this dominance that China wields over rare earths globally.” [10:31]

• Ta Ping Chen on Educational Trends:

  “...a lot of folk who are reassessing whether or not these sorts of college for all paths and mindsets are the best routes for all kids and whether they might be alternatives out there.” [12:05]

This comprehensive summary encapsulates the critical discussions and insights from the episode, offering a clear understanding for those who have not listened to the podcast.