Baker Briefing | Center for Tax and Budget Policy | Center for Energy Studies | Claudio X. González Center for the US and Mexico | China Studies | Podcast

How Will Trump’s Tariffs Impact American Industry and Consumers?

February 10, 2025 | John W. Diamond, Kenneth B. Medlock III, Tony Payan, Steven W. Lewis
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Author(s)

John W. Diamond

Edward A. and Hermena Hancock Kelly Senior Fellow in Public Finance | Director, Center for Tax and Budget Policy

Kenneth B. Medlock III

James A. Baker. III and Susan G. Baker Fellow in Energy and Resource Economics | CES Senior Director

Tony Payan

Claudio X. Gonzalez Fellow in U.S.-Mexico Studies | Françoise and Edward Djerejian Fellow for Mexico Studies | Director, Claudio X. González Center for the U.S. and Mexico

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“There are about 2.5 million cars that come from Mexico to the United States. But we have to understand that those cars are not Mexican cars. They're binational cars. And I think disentangling those chains would be quite difficult and costly. Companies could adjust; they could add the pricing into the ultimate vehicle sticker, but they could also begin to say, well, is it better to go to Arizona or Texas or someplace like that? But that's not going to be done overnight. It takes a while. So it would be very disruptive to certain industries.”  — Tony Payan, Ph.D.

About the Episode

Since entering office for the second time, President Donald Trump has made clear his intention to impose tariffs on goods imported from Canada, Mexico, and China. What do his tariff plans mean for American industries and consumers — and for relationships with our largest trading partners?

Institute experts John W. Diamond, Kenneth B. Medlock III, Tony Payan, and Steven W. Lewis joined the “Baker Briefing” podcast to discuss.

This conversation was recorded in front of a studio audience on Feb. 6, 2025. Subscribe and listen to “Baker Briefing” on Apple, Spotify, or wherever you listen to podcasts.

Transcript

A full transcript of this episode is available here. This transcript was AI-generated and has not been through editorial review.

About ‘Baker Briefing’

The “Baker Briefing” podcast tackles the most critical foreign and domestic policy issues of the day in conversations with experts at the Baker Institute. Hosted by David M. Satterfield, director of the Baker Institute, new episodes are released weekly.

Certain episodes of “Baker Briefing” are recorded in front of a live audience at Rice University in Houston, Texas. These recordings are free and open to the public. To learn about upcoming recordings and other public programming from the Baker Institute, subscribe to our “Events Digest” newsletter, delivered weekly.

 

 

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