In this episode of Trade Policy Decoded, Peter and Pru catch up on the latest developments coming out of the United States with a special focus on the Optimum Tariff Theory.

The theory can certainly paint a rosy picture for the future of the US economy, but does it hold up against current data? And how might international trading partners react to the creation of such a policy?

In answering this question, Peter and Pru decipher some of the key data and indicators which can speak to the performance of the US economy through recent reorientations in trade policy. They also discuss recent developments in the world of diplomacy and trade-negotiations, tracking bilateral talks taking place between the US and economies in Europe and Asia, highlighting the potential outcomes and difficulties which an ‘Optimum tariff Theory’ might encounter.

In wrapping up this episode, Trade Policy Decoded also traces Australia’s position in all of this, and what recent meetings with Beijing and missed meetings with Washington could mean for Australia’s trade strategy and policy moving forward.

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Recorded on 18 July 2025. Check it out HERE.