US president Donald Trump has reignited a global trade battle in his second term with a sweeping new set of tariffs . Starting April 5, all US imports carry a 10% base tariff, with “reciprocal” rates—some as high as 49%—to follow just days later. China has already hit back, announcing a 34% tariff on all American goods.
While Trump and his supporters claim the move will protect jobs and revive domestic industries, critics warn of price hikes and global fallout. As debate picks up, a decades-old clip of economist Milton Friedman is quietly making the rounds on social media.
The video shows Friedman speaking plainly against tariffs. He recounted former president Ronald Reagan's analogy to explain the harm caused by retaliatory trade barriers: “Let’s suppose three of us are in a boat... and one of us shoots holes in the bottom. Is it sensible for the others to do the same? That’s exactly the notion of protection and retaliation.”
He argued that even if other countries act unfairly, the US should not follow. “It hurts them and it hurts us.” Retaliation, he warns, only doubles the damage: “If we turn around and impose retaliation, it will hurt them and hurt us.”
Friedman believed the US should set an example. “The best thing is for other countries to engage in free trade ,” he said. “But even if other countries don’t, then the sensible, rational thing for us to do—all by ourselves—is to follow free trade.”
He adds, “After all, we are the great leader of the free world, not simply a camp follower.”
Friedman also criticises trade limits on smaller economies like Hong Kong and Singapore. “It’s demeaning and degrading for a great power to engage in acts like this,” he says.
According to him, the right move would be to remove all trade restrictions. “Come and sell your goods here. We are delighted to sell to you, and we are delighted to buy from you,” he says, outlining a vision of open, one-sided trade leadership.
A Nobel laureate, Friedman was one of the most influential economists of the 20th century. A staunch advocate of free markets and limited government, Friedman’s ideas shaped the economic policies of leaders like Ronald Reagan in the US and Margaret Thatcher in the UK.
While Trump and his supporters claim the move will protect jobs and revive domestic industries, critics warn of price hikes and global fallout. As debate picks up, a decades-old clip of economist Milton Friedman is quietly making the rounds on social media.
The video shows Friedman speaking plainly against tariffs. He recounted former president Ronald Reagan's analogy to explain the harm caused by retaliatory trade barriers: “Let’s suppose three of us are in a boat... and one of us shoots holes in the bottom. Is it sensible for the others to do the same? That’s exactly the notion of protection and retaliation.”
He argued that even if other countries act unfairly, the US should not follow. “It hurts them and it hurts us.” Retaliation, he warns, only doubles the damage: “If we turn around and impose retaliation, it will hurt them and hurt us.”
Milton Friedman shares his thoughts on tariffs.pic.twitter.com/GBwZT6Crzi
— Department of Government Efficiency News (@DOGE__news) April 4, 2025
Friedman believed the US should set an example. “The best thing is for other countries to engage in free trade ,” he said. “But even if other countries don’t, then the sensible, rational thing for us to do—all by ourselves—is to follow free trade.”
He adds, “After all, we are the great leader of the free world, not simply a camp follower.”
Friedman also criticises trade limits on smaller economies like Hong Kong and Singapore. “It’s demeaning and degrading for a great power to engage in acts like this,” he says.
According to him, the right move would be to remove all trade restrictions. “Come and sell your goods here. We are delighted to sell to you, and we are delighted to buy from you,” he says, outlining a vision of open, one-sided trade leadership.
A Nobel laureate, Friedman was one of the most influential economists of the 20th century. A staunch advocate of free markets and limited government, Friedman’s ideas shaped the economic policies of leaders like Ronald Reagan in the US and Margaret Thatcher in the UK.
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