The trouble with tariffs, with conservative economist Glenn Hubbard

As the world reels from President Trump’s trade war, conservative economist Glenn Hubbard joins Margaret Hoover to discuss the impact of Trump’s tariffs, his doubts on the return of manufacturing jobs, and the difficulty of decoupling from China.

While Hubbard credits President Trump with recognizing the problems of globalization, he says tariffs are not the way to fix the problem. “It means higher prices, disrupted supply chains, job losses and lost output,” he says, adding that it also creates uncertainty for businesses.

Hubbard, who once served as chair of Pres. George W. Bush’s Council of Economic Advisors, says it is “not at all obvious” that reviving U.S. manufacturing will solve America's economic challenges. “Even if we bring back a big manufacturing sector,” he says, “we're not going to bring back manufacturing employment.”

Hubbard says China poses legitimate national security concerns for the U.S., but that tariffs are not the “most effective” way to respond. "We can never truly be decoupled from China," he adds, noting a need to cooperate in response to global crises.

Hubbard also discusses the danger of lost confidence in U.S. markets, how Congress should tackle tax cuts and deficits, and why Bush didn’t listen when he advised against imposing steel tariffs.

Support for “Firing Line for Margaret Hoover” is provided by Robert Granieri, Vanessa and Henry Cornell, The Fairweather Foundation, Peter and Mark Kalikow, Cliff and Laurel Asness, The Meadowlark Foundation, The Beth and Ravenel Curry Foundation, Charles R. Schwab, The Marc Haas Foundation, Katharine J. Rayner, Damon Button, Craig Newmark Philanthropies, The Philip I Kent Foundation, Annie Lamont through The Lamont Family Fund, The Susan Rasinski McCaw Fund, Cheryl Cohen Effron and Blair Effron, and Al and Kathy Hubbard. Corporate funding is provided by Stephens Inc.