The US tariff war – Trump's secret economic plan | Prof. Dr. Christian Rieck

How should other countries react to Trump's tariff war from a game-theoretic perspective? Retaliate or de-escalate?

The effect of non-tariff barriers in tit-for-tat.

What are reciprocal tariffs?

Import sales tax is not a tariff.

Globalization makes you richer: David Ricardo's foreign trade theory.

The effect of tariffs on the importing country: Reindustrialization strategy?

My game theory textbook:
http://www.amazon.de/exec/obidos/ASIN...

Robert Axelrod: The Evolution of Cooperation:
http://www.amazon.de/exec/obidos/ASIN...

►FURTHER INFORMATION FROM TEAM RIECK:

Criticism of tariffs and protectionist trade policies:
Tariffs increase the price of imported goods, limit consumer choice, and lead to welfare losses. While they protect certain industries in the short term, in the long term they weaken competitive dynamics, reduce incentives for innovation, and lead to resource misallocation.
Infant Industry Argument: In exceptional cases, temporary tariffs can be justified to protect young, not yet competitive industries. A clear exit strategy and temporary protection are required to avoid permanent market distortions.

Tariffs as a geopolitical tool:
Tariffs are increasingly serving strategic goals. The US under President Trump used them as part of the "America First" policy to eliminate trade imbalances, bring industry back to the country, and exert political pressure on China and the EU. The measures particularly affected steel, aluminum, and technology goods – sometimes under the pretext of national security.

International reactions – particularly retaliatory tariffs – led to trade conflicts and highlighted the vulnerability of global supply chains.

Misconceptions about EU VAT:
The EU's import VAT is often misinterpreted as a protectionist instrument. In fact, it is part of the regular VAT system and affects imports and domestic products alike. It serves a tax-related, not a trade-policy, purpose. Misinterpretations often arise when economic systems are compared without a differentiated analysis.

Recommended in-depth data sources on the topic:
WTO (World Trade Organization)
World Bank – Database on tariffs and trade flows
OECD – Analyses of globalization

►MORE FROM CHRISTIAN RIECK:

*The art of perfect failure:
https://www.amazon.de/exec/obidos/ASI...

*Instructions for outsmarting yourself:
https://www.amazon.de/exec/obidos/ASI...

*Cheating with ChatGPT:
○https://www.amazon.de/exec/obidos/ASI...
○https://www.amazon.de/exec/obidos/ASI...

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Disclaimer: This was not legal advice. This is an educational channel, not a financial, legal, or medical channel. The content of my videos and podcasts is for general information only and does not constitute financial, legal, or medical advice, or even a personal recommendation. Please always obtain information from multiple independent sources and seek professional advice regarding your decisions. This is not a form of self-therapy or self-diagnosis. Please take these instructions seriously.