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What Is Going On with Trump's Trade War? | Pivot

Kara Swisher and Scott Galloway break down Trump's confusing trade war as he attempts to impose tariffs on Canada, Mexico, and China, and the anticipated economic fallout. Then, Elon Musk's hostile takeover of the U.S. government continues, with DOGE getting access to federal payment systems. Plus, Big Tech earnings and DeepSeek, and the strategy behind OpenAI’s latest funding round. Timestamps: 00:00 Intro Chat 03:39 D.C. Plane Crash Coverage and Blame Game 08:12 Trump’s Trade War 23:25 Government Websites Disappear 29:24 Big Tech Earnings 35:53 OpenAI’s New Funding Round 44:29 Elon’s DOGE Gains Access to Payment System 54:03 Wins and Fails 1:05:02 Preview of Kara's Interview with Ben Stiller #pivot #podcast #donaldtrump #tariffs #tradewar #elonmusk #doge #openai #microsoft #meta #tesla #bigtech #siliconvalley #earnings #econony Subscribe to Pivot on Apple Podcasts: https://podcasts.apple.com/us/podcast/pivot/id1073226719 Subscribe to Pivot on Spotify: https://open.spotify.com/show/4MU3RFGELZxPT9XHVwTNPR Follow us on Instagram and Threads at: https://www.instagram.com/pivotpodcastofficial Follow us on TikTok: https://www.tiktok.com/@PIVOTPODCAST Send us your questions by calling us at 855-51-PIVOT, or at https://podcasts.voxmedia.com/show/pivot Credits: Producers Lara Naaman Zoë Marcus Taylor Griffin Video Editor Andy Robinson Audio Engineer Ernie Indradat Special Thanks Drew Burrows Mia Silverio Dan Chiolan Vox Media's Executive Producer of Audio Nishat Kurwa

Scott GallowayhostKara Swisherhost
Feb 3, 20251h 6mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Trump’s Tariff Shock, Musk’s Power Grab, And AI’s Bubble Risks

  1. Kara Swisher and Scott Galloway open by revisiting a recent plane crash segment, issuing a sincere on-air apology for sounding glib and stressing the human tragedy behind such events. They then dive into Trump’s new tariffs on Canada, Mexico, and China, arguing they function as a hidden tax on U.S. consumers, damage critical alliances, and appear tailored to advantage Elon Musk and Tesla. The conversation widens to Trump’s broader Project 2025-style agenda: mass deletion of federal websites, attacks on DEI and public-health information, dismantling USAID, and empowering Musk’s Doge team to slash government programs and control payments infrastructure. Finally, they assess big tech earnings and the AI funding frenzy, questioning whether OpenAI’s sky‑high valuation is sustainable, and close with reflections on foreign aid cuts, harsh immigration tactics, and the growing moral and strategic costs of U.S. policy shifts.

IDEAS WORTH REMEMBERING

5 ideas

Tariffs act as a regressive tax on American consumers and allies.

The new 25% and 10% tariffs on Canada, Mexico, and China will raise prices on everyday goods—food, lumber, cars, toys—without offsetting tax relief for most households, effectively functioning as a consumer tax while sparing the wealthy.

Punishing Canada and Mexico undermines vital alliances and long-term U.S. interests.

Targeting close partners who share security burdens, intelligence, and economic integration erodes trust and encourages them to deepen ties with rivals like China, weakening America’s strategic position for short-term political theater.

Musk appears to be shaping policy to advantage Tesla over traditional automakers.

Because Tesla’s supply chain is more vertically integrated in the U.S. and its China-sold cars are built in China, the specific tariff structure and likely retaliations hurt legacy U.S. automakers far more than Tesla, suggesting Musk’s influence on design and priorities.

Deleting federal web content disproportionately harms poor and vulnerable populations.

Removing CDC pages on HIV, STDs, vaccines, and civil-rights resources reduces access to critical health and legal information for people without money, lawyers, or private doctors, effectively making ideological battles a war on poor people’s rights and safety.

Centralizing government digital and payments power in Musk’s hands is a systemic risk.

Giving a single billionaire and his loyal, largely unelected team the ability to shut off aid, disrupt benefits, or close agencies via executive control creates “private capture” of the state and weakens democratic checks and oversight.

WORDS WORTH SAVING

5 quotes

“The definition of stupid is doing something that hurts others and hurts yourself.”

Scott Galloway (on Trump’s tariffs, especially against Canada)

“They aren’t the 51st state, but they sure as hell aren’t just another country.”

Kara Swisher (on the depth of U.S.–Canada economic integration)

“Whatever the FAA has been doing the last 30 or 40 years has resulted in outstanding metrics… then DEI should be incorporated into every organization.”

Scott Galloway (arguing that blaming DEI for aviation accidents is absurd given safety records)

“We no longer are a trusted ally… he is taking that, and he is eroding it at an unbelievable rate.”

Scott Galloway (on the long-term damage to U.S. global goodwill)

“AI might be the airline or the PC industry where there's enormous value created and it's all captured by consumers… but no one company is able to capture the trillions of dollars in value.”

Scott Galloway (on why the AI mega-bubble may not deliver the expected corporate jackpots)

On-air apology and ethical reflection about coverage of a fatal plane crashTrump’s new tariffs on Canada, Mexico, and China and their economic/political falloutProject 2025-style rollbacks: deletion of federal websites, attacks on DEI and public informationElon Musk’s expanding influence in U.S. governance via Doge, USAID, and payments systemsBig Tech earnings and divergent AI investment strategies (Apple, Microsoft, Meta, Tesla)AI economics, the DeepSeek/R1 shock, and skepticism about OpenAI’s $300B+ valuationU.S. foreign aid freeze, immigration raids, and the erosion of American soft power and goodwill

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