Liberation Day or Economic Risk? Unpacking Trump’s Trade Strategy

Published April 30, 2025 at 4:00 PM MDT

As President Trump marks his first 100 days in office, his approval rating stands at just 42%—the lowest of any recent president. A key factor behind this decline is the administration’s controversial trade policy, particularly the reciprocal tariffs announced on April 2, now called “Liberation Day” by the President. In this episode, Ambassador Robert Holleyman, former Deputy U.S. Trade Representative, and Edward (Ted) Alden, Senior Fellow at the Council on Foreign Relations, examine what has become the defining issue of Trump’s early presidency.

A newly released Gallup poll reflects broad public skepticism: 89% of Americans believe the tariffs will lead to higher prices, stoke inflation, and fail to meet the administration’s goals of boosting revenue and revitalizing domestic manufacturing. Most economists agree, warning that the policy could damage the U.S. economy and have destabilizing global effects.

Ambassador Holleyman and Ted Alden argue that the President’s trade strategy is deeply flawed and unlikely to succeed. They also provide a vital historical context to the U.S.-China trade relationship, warning of the serious risks if the two powers cannot reach a workable agreement.

Ambassador Holleyman, now a Santa Fe resident, served in the Obama administration with lead responsibility for U.S. trade and investment relations in Asia. His insider perspective offers a rare look at the complexities of international trade policy in a time of rising tensions.

Edward Alden is a Senior Fellow at the Council on Foreign Relations, where he specializes in U.S. economic competitiveness, trade and immigration policy. His latest book is When the World Closed Its Doors: The Covid-19 Tragedy and the Future of Borders.

Host: Jim Falk

Co-Host: Peter Smith

Guests Ambassador Robert Holleyman, U.S. Deputy Trade Representative (Sept. 2014-Jan. 2017)

Edward Alden, Senior Fellow, Council on Foreign Relations