'Trade wars have only losers,' former Fed vice chair says

Trade Policy & International Relations - Trade wars generally result in losses for all parties involved, although larger economies might inflict greater losses on others [4] - The global trading system may not be entirely fair, with the US imposing a 25% tariff on auto imports from Europe while facing a 10% import duty in return, and dealing with issues like intellectual property theft by China [6] - The US has historically led in reducing tariff barriers, but there's concern about a shift towards increasing them [7][8] - Reshoring American manufacturing is a goal, but many manufacturing jobs may not return, and tariffs on inputs could negatively impact manufacturing companies [11] - Government incentives and subsidies, like the CHIPS Act, can help secure domestic production of critical goods such as chips, reducing reliance on countries like Taiwan [14][15] Economic Impact of Research & Development - Government grants, business investment, and university research collaboration have historically driven comparative advantage in high-wage, high-tech industries [18][19] - Cuts to research funding can have long-lasting negative consequences, as stopping research, especially drug development, is difficult to restart [21] - The Trump administration's actions are perceived as an attack on elite universities and research, potentially driven by political motivations [20][23] University Funding & Endowment - Universities use endowment income to support financial aid and keep education affordable [25] - Some universities are facing grant cancellations and are targets of the endowment income tax [25]