Beyond the Headlines: Marc Busch on How Tariffs Shape Global Markets

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On Wednesday, April 9, the Center for Business and Public Policy (CBPP) at Georgetown University’s McDonough School of Business welcomed Marc Busch, professor of international business diplomacy, to offer a nonpartisan view of the latest U.S.-China trade tensions, the 20% tariffs imposed by the Trump Administration, China’s counter moves, and the long-term impacts on global markets.

Busch challenged the legal and economic logic behind Trump’s tariffs, focusing on the administration’s use of the International Emergency Economic Powers Act (IEEPA) to bypass Congress. “IEEPA was never meant to conduct trade wars,” Busch explained, warning that its misuse sets a troubling precedent. He emphasized that IEEPA was originally intended for targeted sanctions during genuine national emergencies — not for implementing broad, unilateral tariff programs.

Framing the tariffs as more political than strategic, Busch debunked the notion that tariffs could replace income tax revenue, estimating it would take an impossible 70% universal tariff to match federal income tax levels. On top of these unrealistic aims, Busch noted the tariffs had little public support, with only 18% of Americans in favor.

Next, Busch walked attendees through the potential long-term economic consequences:

  • surging consumer prices, 
  • retaliatory tariffs, and 
  • legal pushback from over 4,000 companies 

He warned that in sectors like patented pharmaceuticals, tariff-driven price spikes could leave Americans with no affordable alternatives, putting critical medications out of reach.

Busch also stressed that bilateral trade deficits aren’t fixed by bilateral policies, a common misunderstanding that distracts from smarter solutions. While he acknowledged valid concerns over non-tariff barriers and digital trade issues, he criticized the lack of transparency, oversight, and strategy behind recent tariff measures.

He expanded on this by calling attention to the misuse of the escalation clause — originally designed to manage disputes, not launch trade wars. Busch argued that such sweeping measures damaged the United States’ ability to bring trade partners to the table, especially when countries like Vietnam offered zero-tariff deals that were rejected.

Busch concluded with a call to reign in executive overreach and return trade authority to Congress. He emphasized that nothing is cost-free in a global economy, and that we cannot unwind this damage without serious reform.

By Bella DeLeo (C’26)