Peter and CFR’s Brad Setser discuss Trump's “Liberation Day” tariff announcement, including what Trump’s goals are, how bad the economic impacts might get, and what to expect from foreign retaliation.

In short: the tariffs are broader and quicker than most of us expected, and the impacts might be akin to a $50 or more per barrel oil shock. On the other hand, maybe we'll get quick deals!

Also, Brad has an idea for Europe to drastically cut the dollar value of its trade surplus with the US. (Hint: it is involves pharmaceuticals).