As trade tensions escalate and global markets wobble, economist Stephen Moore joined Chicago’s Morning Answer with Amy Jacobson and guest host Chris Krok to break down what former President Trump’s new tariff strategy could mean for America’s economy—and for China’s dominance.
Moore, co-author of The Trump Economic Miracle and a longtime policy advisor to the former president, had a clear message: Tariffs aren’t ideal, but Trump’s approach could force long-overdue change.
“We’re not in a perfect free market right now. We are where we are,” Moore told AM560 listeners. “But Trump is putting pressure on these countries to cut deals—and if they don’t, they’ll lose access to our market.”
Countries like Japan, South Korea, the UK, and Australia are already offering trade concessions in response to Trump’s pressure campaign. Others, including China and Canada, have retaliated with their own tariffs.
Moore offered a potential solution: a “zero-for-zero” tariff policy.
“Arthur Laffer and I wrote in the Wall Street Journal that Trump should say: ‘We’ll go to zero tariffs if you do too.’ Trump’s floated this idea before. The problem is, none of these countries want to do it.”
China’s Economic Grip: “They Want to Own Us”
The discussion turned fiery when it came to China, which Moore said continues to manipulate trade, steal intellectual property, and undercut American workers.
“I’m sick of China,” Moore declared. “We need to decouple. Let’s all start a movement—‘Sell China.’ If it says ‘Made in China,’ don’t buy it.”
Both Jacobson and Krok agreed, citing everything from flimsy clothing to AI-generated Chinese propaganda mocking American workers. Moore emphasized the irony of the U.S. granting China “most favored nation” trade status despite decades of abuse.
“They are not our friend,” Moore said. “They want to surpass us in everything—and they’re using our money to do it.”
He praised companies like Apple for shifting production to India and encouraged others to follow suit.
“Yes, it might cost you $5 more for a pair of shoes,” he said. “But it’s your patriotic duty to stop supporting China.”
Stocks, Recession Fears, and What Comes Next
Amid market uncertainty, Moore tried to strike a hopeful tone. While he acknowledged that first-quarter GDP may come in negative, and the risk of a technical recession looms, he echoed his colleague Larry Kudlow’s optimism that Trump’s pressure tactics could spark a market rally in the months ahead.
“If we get a few big trade deals done, markets will surge,” Moore said. “I’m not saying the selloff is over, but if you’re buying stocks now and holding them for 2–5 years, you’ll be glad you did.”
He advised Americans to focus on long-term investments and to see the bigger picture—Trump’s tariffs, he argued, are not about punishment but leverage.
“This is a negotiation,” Moore said. “Trump knows what he’s doing.”
EU, NATO, and Who Our Friends Really Are
Moore warned that the coming months will reveal who America’s real allies are. As China courts European nations for trade deals, Moore says it’s time to take a hard look at how much the U.S. spends on NATO and European defense.
“We’ve bailed out Europe for 50 years,” he said. “If they side with China now, maybe it’s time we stop footing the bill.”