Economist Stewart Paterson joins us to explain why the overvaluation of the U.S. dollar—not just tariffs—is at the heart of America’s persistent trade deficits. Based on his recent paper for the Hinrich Foundation titled “Trump, the US Dollar, and American Trade Policy,” this conversation breaks down the real economic consequences of currency misalignment. Why have tariffs failed to solve the trade imbalance? Why does a strong dollar hurt U.S. exporters—and benefit others?

This interview was conducted by Stephanie Ochoa, the White House correspondent for Entravision.

This episode was produced in partnership with the Hinrich Foundation. AFPC-USA is solely responsible for the content of this episode.