(14 Feb 2025)
RESTRICTION SUMMARY:
ASSOCIATED PRESS
New York – 14 February 2025
1. Joseph Foudy, Distinguished Clincial Professor at the NYU Stern School of Business, looking at tariff chart
2. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
“So reciprocal tariffs is something that we haven’t tried to enact in a long, long time because essentially it means we’re trying to broadly match the tariffs between two countries. That turns out to be quite tricky because, you know, we import and export quite dissimilar products.”
3. Foudy at computer
4. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
“We often joke it’s hard to get economists to agree on anything. But one of the most powerful consensus is we have and we have 2000 years of history on this is tariffs are invariably bad for an economy and there are attacks on consumers. They are not paid by foreigners. They’re just an indirect way to tax our own citizens to generate revenue or in part to reward your own companies.”
5. Foudy looking at tariff data
6. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
“So this will send shockwaves through the world economy. And that’s before you price in the fact that other countries will feel need to retaliate. The tariffs on foreign goods will be a tax on our consumers. When they retaliate, they’ll be hurting themselves, but also hurting U.S. exporters.”
8. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
“So one of the other challenges with with tariffs and the sort of threats of a trade war we face now is it just creates uncertainty for business. And when businesses isn’t sure what the future is going to be, they put almost every major product on pause. And we’re seeing that now. We don’t know what countries will hit, when will hit them. Is this a negotiating tool? We’re not even sure whether we’ll count exchange rates or other government policies as part of the things that we’re targeting as well. And so you can imagine you’re just paralyzing companies around the world with these kinds of threats.”
9. Cutaway of Foudy
10. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
“I think market reactions are muted. We’re still just very uncertain which countries will this hit? What will it take the shape of? Is this just a negotiating ploy?”
11. Foudy looking up data on computer
12. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
“So obviously, many factors weigh on the stock market on a given day. But if we look forward and ask what are factors that are going to, you know, lower stock prices over time, we’re already seeing increasing consumer uncertainty. Consumer confidence is down. Inflation expectations are up, which also means the Fed is going to be less able to lower rates over the course of the year. That has to have a negative impact on stock prices.”
13. Foudy in chair
14. SOUNDBITE (English) Joseph Foudy, NYU Economics Professor:
15. Mid of Foudy
STORYLINE:
President Donald Trump has rolled out his plan to increase U.S. tariffs to match the tax rates that other countries charge on imports. The Republican is possibly triggering a broader economic confrontation with allies and rivals alike as he hopes to eliminate any trade imbalances.
Trump said Thursday: “I’ve decided for purposes of fairness that I will charge a reciprocal tariff.’
The prospect of a dramatic hike on tariffs could send shockwaves through the world economy, possibly depressing growth while also causing inflation to intensify.
“So obviously, many factors weigh on the stock market on a given day,” said Foudy.
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