06/16/2025
Tariffs and Taxes: What Could US Trade Policy Look Like? with Dr. Fritz Laux
In this episode of *The Econ Buff*, I’m joined by Dr. Fritz Laux to explore U.S. tariff policy and a compelling alternative approach—taxing the income foreign investors earn in the U.S. markets. We begin with an overview of current tariff strategies under the administration, discussing their economic and political framing. Dr. Laux explains how economic theory can help evaluate tariffs’ effectiveness and introduces his proposed investment income tax as a targeted tool for trade management and revenue generation. We dive into how this tax might work, its potential impact on growth and foreign capital flows, and why it’s rarely used despite its promise. Drawing on international examples, we compare tariffs and foreign investment taxes, discuss political and legal hurdles, including tax treaty conflicts, and consider how these policies could coexist.
If you’re interested in trade policy, economics, or innovative tax strategies, this episode is for you.
Listen now on YouTube https://youtu.be/mghpPpMFKtY?si=sFkOpmojxkUdzp0W or wherever you get your podcasts.
Dr. Fritz Laux joins me to discuss U.S. tariff policy and the taxation of foreign investment as a possible alternative approach. We begin with an overview of...