[Levin]

https://www.cnbc.com/2025/04/03/us-tarif...n-era.html

[Levin]

For those not familiar with the Smoot-HawleyTariff Act back during the Great Depression:

https://en.wikipedia.org/wiki/Smoot%E2%8...Tariff_Act

[Levin]

Here's a summary from DeepSeek on the Smoot-Hawley Tariff Act:


‌The Smoot-Hawley Tariff Act of 1930 was one of the most destructive trade policies in history, worsening the Great Depression and triggering global retaliation. Here’s what happened before, during, and after its passage:

‌

### **Before Smoot-Hawley (1920s)**
1. Post-WWI Economic Boom
  - The 1920s saw strong U.S. growth, but agriculture struggled due to overproduction and falling prices. 
  - American farmers lobbied for tariff protections against foreign competition.

‌2. Rising Protectionist Sentiment
  - The 1929 stock market crash intensified calls for trade barriers to protect American jobs. 
  - Congress, led by Sen. Reed Smoot (R-UT) and Rep. Willis Hawley (R-OR), drafted a bill raising tariffs on over 20,000 imported goods.

3. Economists Warned Against It 
  - Over 1,000 economists signed a petition urging President Hoover to veto the bill. 
  - Henry Ford called it "economic stupidity," and Thomas Lamont (J.P. Morgan banker) said it would retaliate in kind.

‌

### **What Smoot-Hawley Did (1930)**
- Raised U.S. tariffs to record highs (average duties climbed to ~60% on some goods). 
- Targeted agricultural and industrial imports (e.g., food, textiles, machinery). 
- Signed into law by Hoover (June 1930) despite warnings.

‌

### **Immediate Aftermath (1930–1933)**
1. Global Retaliation
  - Canada imposed tariffs on U.S. goods and shifted trade to the British Empire. 
  - Europe (UK, France, Germany) retaliated with their own tariffs and trade blocs.
  - Latin America (Cuba, Mexico) boycotted U.S. products.

‌2. Trade Collapse 
  - U.S. exports fell by ~61% (1929–1933). 
  - Global trade dropped by ~66% as nations turned inward.

3. Deepened the Great Depression 
  - Bank failures increased as businesses reliant on exports went bankrupt. 
  - Unemployment soared to 25% in the U.S. (1933).

‌

### **Long-Term Consequences (1934–1945+)**
1. FDR Reversed Course 
  - The Reciprocal Trade Agreements Act (1934) lowered tariffs via bilateral deals.
  - FDR’s Secretary of State, Cordell Hull, pushed for freer trade to rebuild the global economy.

‌2. Birth of the Modern Trade System 
  - After WWII, the Bretton Woods system (1944) and GATT (1947, later WTO) were created to prevent another Smoot-Hawley disaster.

3. Lesson Learned: Trade Wars Backfire 
  - Economists still cite Smoot-Hawley as a warning against protectionism. 
  - Modern trade wars (e.g., Trump’s 2018 tariffs) have been milder but followed a similar playbook.

‌

---

‌

### **Key Takeaways** 
✅ Smoot-Hawley didn’t cause the Great Depression (the 1929 crash and Fed mistakes did), but it made it far worse. 
✅ Retaliation was swift and brutal—global trade froze, deepening the economic crisis. 
✅ The U.S. eventually embraced free trade after WWII, leading to decades of prosperity.

‌

### **Modern Parallels** 
- Trump’s 2018 tariffs led to retaliation but were smaller in scale. 
- Biden kept many tariffs, showing protectionism remains politically popular. 
- A full-scale global trade war today would be even worse due to complex supply chains.

‌

### **Final Verdict** 
Smoot-Hawley was a historic mistake that turned a recession into a global economic disaster. Its legacy is a warning: trade wars hurt everyone.

[Alice Alicia]

Great depression already here.

[Rubitin]

https://youtu.be/D2EWNlSQCeU

[A2Z]

He is betting all will go kow tow him, cannot compare him to 90+ yrs ago. he is 1001% better, will turn around once mid term election comes ard, before that his maga supporters kenna toast.

[watchfirst9]

he wish for a great recession, may result in great depression