JOHN: GOOD EVENING, I'M JOHN YANG.

ACROSS THE GLOBE THIS WEEKEND, WORLD LEADERS ARE TRYING TO FIGURE OUT HOW TO RESPOND TO PRESIDENT TRUMP'S ATTEMPT TO RESHAPE THE GLOBAL ECONOMY BY IMPOSING STEEP TARIFFS.

THE EUROPEAN UNION IS ALREADY SAID TO BE DRAWING UP A LIST OF PROPOSED RETALIATORY TARIFFS ON U.S. PRODUCTS.

AND A WHITE HOUSE OFFICIAL SAYS THAT MORE THAN 50 COUNTRIES HAVE CONTACTED THE ADMINISTRATION SO FAR TO START NEGOTIATIONS ON THE IMPORT DUTIES.

MEANWHILE, AFTER LAST WEEK'S MARKET PLUNGE, INVESTORS ARE ANXIOUSLY AWAITING THE OPENING OF ASIAN STOCK EXCHANGES IN JUST A FEW HOURS.

DAVID J LYNCH IS GLOBAL ECONOMICS CORRESPONDENT FOR THE WASHINGTON POST.

HE HAS A NEW BOOK COMING OUT LATER THIS SUMMER, "THE WORLD'S WORST BET: HOW THE GLOBALIZATION GAMBLE WENT WRONG (AND WHAT WOULD MAKE IT RIGHT)."

HOW BIG A DEPARTURE IS THIS NEW POLICY THAT PRESIDENT TRUMP IS TRYING FROM WHAT HAD BEEN THE PREVIOUS POLICIES?

>> THIS IS AN EPIC SHIFT IN INTERNATIONAL ECONOMIC AFFAIRS.

THIS IS REALLY AN ABOUT-FACE FOR THE UNITED STATES.

AFTER 80 YEARS OF TRYING TO LEAD THE GLOBE INTO A MORE INTEGRATED, SEAMLESS GLOBAL ECONOMY WITH FREE TRADE, CAPITAL FLOWS, INVESTMENT MOVING EASILY ACROSS BORDERS, NOW THE PRESIDENT OF THE UNITED STATES IS SAYING THAT WAS A BAD DEAL, IT HURT AMERICANS, IT ALLOWED OTHER COUNTRIES TO TAKE ADVANTAGE OF US.

WE WILL GO IN A DIFFERENT DIRECTION.

JOHN: HOW ARE AVERAGE AMERICANS LIKELY TO FEEL THE IMPACT OF THIS?

>> HIGHER PRICES.

JOHN: ON?

>> ON JUST ABOUT ANYTHING YOU CAN THINK OF.

HE'S TAKEN A LEFT RIGHT SHOT AT FOREIGN TRADE WITH A 10% TARIFF ON EVERYTHING.

JUST ABOUT EVERY GOOD THAT COMES INTO THE COUNTRY.

AND THEN A SECOND ROUND OF MUCH HIGHER, UP TO 40% AND 50% ON SOME SELECTED COUNTRIES.

TOYS, SMARTPHONES, FURNITURE, FOOTWEAR, CLOTHING.

JUST ABOUT EVERYTHING YOU CAN THINK OF.

ALCOHOL FROM ANOTHER COUNTRY, YOU WILL PAY MORE FOR IT.

JOHN: HE THINKS THE PALE FOR THE PAIN WILL BE A REVITALIZED AMERICAN MANUFACTURING.

CAN TARIFFS BUILD REVITALIZED AMERICAN MANUFACTURING?

>> THE PRESIDENT THINKS SO BUT MOST ECONOMISTS WOULD SAY NO OR IT WOULD ONLY OCCUR OVER A QUITE LONG PERIOD OF TIME AND AT ENORMOUS COST.

THE WAY SUPPLY CHAINS AND MANUFACTURING IS SET UP NOW IS OPTIMIZED FOR COST AND EFFICIENCY.

ANYTHING WE DO TO CHANGE THAT WILL BY DEFINITION COST MORE AND BE LESS EFFICIENT.

THE PRESIDENT SAYS ESSENTIALLY THAT'S OK BECAUSE WE WILL GET OTHER BENEFITS FROM IT.

MORE MANUFACTURING JOBS THAT WILL HELP REVITALIZE COMMUNITIES THAT HAVE BEEN HARD-HIT BY AUTOMATION AND IMPORT COMPETITION, BUT IT'S A HUGE GAMBLE AND MOST ECONOMISTS AND PEOPLE ON WALL STREET THINK HE'S WRONG.

JOHN: THIS IS A SEACHANGE, A SEACHANGE FROM GLOBALIZATION WHICH HAD BEEN THE DRIVING FORCE SINCE THE BILL CLINTON PRESIDENCY.

WHAT WAS THE GOAL OF GLOBALIZATION?

>> THE IDEA WAS SIMPLE.

BILL CLINTON USED TO SAY GLOBALIZATION IS A FACT, NOT A CHOICE.

THIS IS SOMETHING THAT WILL MAKE US WEALTHY OR AS A COUNTRY AND IF DONE RIGHT, IT CAN CONTRIBUTE TO PEACEFUL RELATIONS, POLITICAL LIBERALIZATION IN PLACES LIKE CHINA AND RUSSIA.

FOR A LONG TIME, IT LOOKED LIKE THAT WAS HAPPENING.

CLINTON ALSO SAID THERE WILL BE WINNERS AND LOSERS FROM THIS PROCESS.

THAT WILL BE OK BECAUSE THE WINNERS GAINS WILL BE SO GREAT, THEY WILL BE ABLE TO PROVIDE FOR THE LOSERS TO HELP THOSE WITHOUT THE SKILLS AND EDUCATION TO CAPITALIZE ON THIS, BUT THAT SECOND PART NEVER HAPPENED.

IT WAS ALL JUST RHETORIC.

JOHN: WERE THERE LOSERS IN THIS?

WERE THERE SOME PEOPLE AMERICANS LEFT BEHIND?

>> NO QUESTION.

SPECIFIC GROUPS OF PEOPLE.

THOSE WITH THE LEAST AMOUNT OF EDUCATION, THE LEAST SKILLS, ENGAGED IN BASIC MANUFACTURING.

THEY TOOK IT IN THE CHOPS AND THEY TENDED TO BE, THE COMPANIES THEY WORK FOR, TENDED TO BE IN CERTAIN COMMUNITIES SO THE COST OF THE PROCESS, WHICH WE SHOULD SAY BROUGHT ENORMOUS BENEFITS LIKE KEEPING INFLATION UNDER CONTROL, GIVE US A WIDER PRODUCT ARRAY, AND CREATED A BETTER MIX OF JOBS, BUT THE COSTS WERE CONCENTRATED LIKE AN ATOMIC TUMOR IN SPECIFIC COMMUNITIES.

THOSE PEOPLE UNDERSTANDABLY GREW TO RESENT WHAT WAS HAPPENING.

JOHN: YOU SAY PEOPLE WITH LESS EDUCATION WHICH WAS ALWAYS -- ALSO A WAY OF TELLING WHO THE PEOPLE SUPPORTED IN THE LAST ELECTION.

DID ANY OF THE ARCHITECTS OF THIS GLOBALIZATION IDEA HAVE SECOND THOUGHTS OR KNOWLEDGE THAT SOME PEOPLE LOST OUT?

>> PEOPLE WILL SAY NOW AND REALLY ON BOTH ENDS OF THE SPECTRUM, BUT PEOPLE WHO WORKED IN THE CLINTON AND BUSH ADMINISTRATION WILL SAY WE SHOULD HAVE DONE MORE, WE SHOULD HAVE PRIORITIZED DISTRIBUTIONAL COSTS, DONE MORE IN TERMS OF LABOR MARKET POLICIES INTO EDUCATION SYSTEMS AND WAGE INSURANCE TO HELP THOSE PEOPLE WHO THROUGH NO FAULT OF THEIR OWN WERE LEFT BEHIND.

THE PROBLEM NOW IS THAT THESE ISSUES HAVE BEEN LEFT UNADDRESSED FOR SO LONG, IT HAS METASTASIZED INTO THIS PROBLEM THAT IS BEING TREATED WITH A VERY BLUNT SOLUTION.

DAVID J LYNCH OF THE WASHINGTON POST, THANK YOU VERY MUCH.

SURE.