Wolfers: The Problem Is, Even if Trump’s Theory Could Work, ‘He’s Not Moving Expectations About Future Tariff Rates’

RUSH EXCERPT:
WOLFERS: "Yeah. Chris, you’re asking me to grade your paper because you get an a. Right there. Look, you’re exactly right. If I’m building a factory, the factory comes online in five years and then persists for 50 years. So the thing that matters is I’m trying to decide whether to build a factory. Is my expectation of the tariff rate from about the year 2030 for the next few decades. That’s different than the thing Trump’s moved around, which is the actual tariff rate. And the problem is, even if Trump’s theory could work, he’s not moving expectations about future tariff rates. In fact, we all know that when he announces a tariff on Wednesday, it may not be there by Thursday, let alone next week, next year or next decade. And it’s actually that that’s the point where the chaos means we’re going to get all the costs of the tariffs and None of the benefits quickly."