What I Read this Week (April 6, 2025)

Tariffs, Tariffs, Tariffs! This week we will do 1 long piece instead of many clips

Innovation Amid Yield Compression: DeFi Lending Markets in Q1 2025 (Coindesk, by me)

I’m writing a new quarterly op-ed series in Coindesk highlighting the state of onchain yield markets. I published my first one this past week.

Summary on my X account, but really just go read the whole piece :)

“Liberation Day” Tariffs Explained (CSIS)

Tariffs are back in the spotlight (“Liberation Day”) and almost all of the longform and viral Tweets I’ve read have been very negative. Critics call them a tax on consumers, a form of protectionism that’ll spike prices and spark trade wars. Fair!

But let’s steelman the other side: tariffs could be a strategic reset for an America that’s been too generous, too exposed, and too reliant on a global system that doesn’t play fair.

My Long Take…

The Free Trade Myth: It’s Not Free If It’s One-Sided

We’ve been sold “free trade” as a win-win (open markets, cheap goods, global peace).

Investopedia simply defines free trade:

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

But it’s not free when Vietnam slaps a 15% tariff on U.S. pork or India hits our cars with 70%, while their goods show up in American ports at near-zero duty. The U.S. has kept tariffs low while tolerating higher barriers abroad. Why? The best response I’ve come across is “strategy.”

We’ve traded symmetry for influence, betting the cheap exports (think $20 sneakers) of other countries outweigh the hit to our farmers or manufacturers. It’s kept Walmart shelves stocked and consumer prices tame. For the average blue collar worker that means affordable tools, clothes, and gas, stretching paychecks further.

But it’s a calculated trade-off, not a rule. Manufacturing’s share of GDP has slid from 20% in 1980 to 11% today, partly because we’ve let others shield their industries while ours bleed. Tariffs could flip that script—make imports pricier, nudge companies to build here, and force a conversation with nations banking on our open doors. Fair? Maybe not. Strategic? That’s been the line.

But “free trade” feels like a stretch when the scales tip this hard.

Reshoring: Long-Term Grit Over Short-Term Gain

The long-game case for tariffs is reshoring and it’s compelling. The pandemic laid bare our reliance on far-flung supply chains: chips from Taiwan, meds from China, gear from Vietnam. Tariffs could incentivize companies to relocate, rebuilding industries we’ve lost. It’s not just security; it’s jobs…stable, middle-class ones like factory lines or construction, the kind that keep towns alive and tax bases fat. The U.S. trade deficit hit $1 trillion in 2022; making more here could claw that back, keeping wealth domestic.

Plants don’t sprout overnight, and upfront costs sting. Higher steel prices (they are exempted from tariffs, btw) might mean pricier bridges or cars. Critics warn of trade wars; China’s already flexing retaliation. But long-term, a more self-reliant economy could mean fewer shocks and a stronger backbone. Look at semiconductors: we’re pouring billions into domestic fabs now and are on track to be able to produce the latest models (albeit, not until 2028, but we have to start somewhere.

A second fab, set to be operational in 2028, plans to offer 2- or 3-nm-node processes

Tariffs could accelerate that shift across sectors, trading short-term pain for lasting muscle.

The Debt Angle: Tariffs as Economic Leverage

Then there’s the macro play. Take Bessent, Trump’s Treasury pick. He’s pushing to get the 10-year Treasury yield (now 4%!!!!) down to ease our $36 trillion debt’s interest burden. We spent $1 trillion on debt service last year, more than defense. Lower yields cut that tab, freeing cash for growth. Tariffs fit here indirectly: if they spark a flight to U.S. bonds (say, via market panic or a stronger dollar), yields could dip. Bessent’s betting on energy production and less long-term debt issuance too, but tariffs could amplify the pressure. Risky? YES, very. Inflation might spike instead, pushing yields up. Still, it’s a bold lever to pull, and a steelman sees it as part of a bigger rebalance.

Was there another way to do this? I have no idea.

The Bottom Line: Tariffs Aren’t Charity—They’re a Reckoning

Steelmanning tariffs isn’t about blind cheerleading. They’re not perfect. Consumers may pay more upfront, and global ties could fray. But they’re a pushback against a system where we’ve played nice while others play hardball. They’re a bet on resilience over reliance, on jobs over imports, on forcing fairness instead of preaching it. The average American might see higher prices but gain steadier work and a nation less at the mercy of distant ports. It’s tough medicine—maybe the kind we’ve needed all along.