In hour 2 of the Clay Travis and Buck Sexton show, the hosts engage in a detailed discussion with renowned economist Dr. Art Laffer. They explore the complexities of the current trade wars, focusing on the strategic use of tariffs by the Trump administration. Dr. Laffer emphasizes the importance of negotiating free trade deals and explains how the U.S. aims to reduce protectionist barriers imposed by other countries. He argues that trade deficits can be beneficial, as they attract foreign investment into the U.S. economy.

The conversation delves into the economic relationship between the U.S. and China, with Dr. Laffer advocating for the inclusion of China in free trade agreements despite its current protectionist policies. He highlights the potential long-term benefits of integrating China into the global free trade system. The discussion also touches on the economic policies of various U.S. states, with Dr. Laffer criticizing high-tax states for driving away manufacturing jobs and praising low-tax states like Tennessee for their economic success.

Additionally, the hosts address the broader implications of the trade wars, including the impact on the stock market and the strategic positioning of the U.S. in global trade negotiations. They discuss the recent announcement by President Trump to pause tariffs on most countries while increasing tariffs on China, interpreting this move as a strategic effort to isolate China and strengthen the U.S. negotiating position.

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