Why Tariffs Haven’t Balanced Out Global Trade

Key takeaways

The competition between the U.S. and China in medical research is critical for America's access to innovative treatments.
The assassination of a key drug cartel leader in Mexico has ignited widespread violence and governmental unrest.
Student-led protests in Iran indicate a growing defiance against the regime despite ongoing repressive measures.
President Trump's tariff strategy has not succeeded in reducing the U.S. trade deficit as intended.
The ETF market is transforming with riskier investments gaining popularity, presenting new challenges for investors.

Summary

The U.S. and China Race in Medical Research

The podcast begins by addressing the intense competition between the U.S. and China regarding advancements in medical research. With China making significant investments, the host emphasizes the necessity for America to maintain its supremacy in medical innovations to ensure access to superior treatments for its citizens.

Violence Erupts in Mexico Over Drug Kingpin's Death

Following the military's killing of notorious drug kingpin Namesio Mancho Oseguera, Mexico faces a surge in violence. The podcast details how this pivotal operation has resulted in civil unrest, including the burning of vehicles and blockage of roads in Guadalajara. The U.S. has been pushing for military involvement in Mexico's fight against drug cartels, but Mexico has resisted.

Iran's Protests and U.S. Military Preparations

The podcast highlights ongoing protests in Iran, particularly among students who are rallying against the government. These demonstrations represent a resurgence of defiance against the regime. The U.S. continues to position forces in the region amid stalled negotiations regarding Iran's nuclear and missile programs, with a sense of impending military intervention looming.

Tariff Policies and Trade Deficit Failures

A significant portion of the discussion revolves around President Trump's tariffs and their ineffectiveness in addressing the U.S. trade deficit. Despite Trump's intentions to alter global trade balances, reports indicate that the trade deficit remains largely unchanged, as other exporting countries actively adapt their economies to counteract tariffs. Experts weigh in on the long-term implications and alternative solutions to the trade deficit problem.

The Evolution of ETFs in the Investment Landscape

In a captivating turn, the episode explores how the once-staid ETF market is now embracing more exotic and risky ventures. As asset managers seek to capture higher fees, the introduction of actively managed ETFs is discussed, along with the implications of this shift for investors, particularly concerning the risks involved.

Show notes

A.M. Edition for Feb. 23. After Friday’s Supreme Court ruling, new tariffs are on the table. But WSJ correspondent Tom Fairless says President Trump’s favored tool for remaking global trade hasn’t helped to shrink the U.S. trade deficit, with many U.S. trade partners now subsidizing their export-driven economies. Plus, violence erupts in Mexico after the military kills the country’s most powerful drug kingpin, escalating the government’s crackdown on cartels.

And the once-boring ETF market is embracing more exotic and risky bets, with asset managers looking to grab a slice of the fees they generate. Daniel Bach hosts.

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