Andrew Schulz's Flagrant with Akaash Singh
Trump's Tariff Gamble EXPLAINED with Chamath
Fri, 11 Apr 2025
YERRR BONUS EP - the guys needed to get a breakdown of what was going on in the financial world so they brought in Chamath Palihapitiya from the All-In Podcast to explain to us what's going on with the tariffs, the economy, Trump and much much more. INDULGE 00:00 Rant! 00:43 What are the tariffs? 5:32 Other countries use of tariffs 9:39 The United States is the truly global leader 14:09 Reliance on others + Tariff helping self-sufficiency 16:55 Was the formula haphazard? 18:28 What is a trade deficit? 21:26 Using other countries as loopholes 23:54 Can China step in and exploit? Trading NATO 29:33 Job creation through tariffs? 34:23 Being world's consumer + Political Cronyism 39:29 Understanding America's debt 49:36 Trump is truly MAGA + Tariff shocked the market 53:08 Stock Market slumping's impact + What is inflation? 1:01:21 America needs growth + Elon's record 1:06:18 What is the downside to tariffs? Trump willing to talk 1:13:58 Being prepared this time around 1:16:58 How Chamath uses his capital 1:20:12 Chamath doesn't own public stocks + Recession incoming? 1:23:36 Are Recessions Republican led? 1:25:44 Views on the outcome? Waiting this out Learn more about your ad choices. Visit megaphone.fm/adchoices
What are Trump's tariffs and their potential impact?
Hello, everybody. The stock market is nosediving faster than Conor McGregor at a Colombian cookout. People are concerned, anxious, terrified. So we've asked someone to come on the podcast to calm your nerves, put you at ease. No, not her. We've asked We're going to find out the real endgame for Trump's tariffs, what happens if they don't work, and why we might already be in a recession.
Indulge in this bonus flagrant episode. Why don't we just start at the tariffs in general? What exactly is Trump doing? What is best case scenario? What is worst case scenario? And then what are your personal thoughts?
Let's let's look at your Air Force Ones or your dunks that you guys are wearing there or your Converse. Those things are made or Jordans. Those things are made. um outside of the united states even though the company that makes them is an american company and what happens is they're made over there and then they're shipped to the united states and then they're sold to you guys somehow right um
And you would think that that's all fine and good because you're like, well, hold on, this is an American company, I'm supporting an American company. And it turns out that the details are a little bit more complicated than that. So starting in about the year 2000, what happened was there was this, everybody thought that the right thing to do was to push every country in the world
to this form of capitalism. And they looked at countries like China and they were like, how do we make China more capitalist? And you would say, well, why would we do that? And the governing logic at the time was, if they're more capitalist... they'll also become more democratic. If they are more democratic, they are more predictable the way that we normally think about countries.
So let's not repeat a Cold War. Let's not repeat maybe some other political regime in the 40s or 50s or 60s. And so what happened was we let China into the WTO, the World Trade Organization. And what that allowed corporations to do is basically an enormous form of arbitrage.
So let's say that those Jordans were made in the United States and you were paying a worker 25 bucks an hour to work on a line to make that shoe. And then you would send it to Foot Locker and sell it. I'm just being very simple just to kind of explain this example. But now, instead of having to pay sort of any typical form of taxes, Nike, after the year 2000,
was able to ask the question, where else could I make this Jordan? And the Chinese raised their hand and they said, hey, guys, we have these really great factories. We have extremely good workers and we can do it for much cheaper than 25 bucks an hour. And so what does Nike do? They send the job over there.
Take that one narrow example and apply it across every industry you can imagine, from shoes to iPhones and everything in between. And what has essentially happened over the last 25 years is we have hollowed out an enormous part of the middle class economy in the United States. And we've explained it away by saying, hey, we don't want to do that kind of work.
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