Tariffs, Trade Wars and the Great Depression's Lessons

Tariffs, Trade Wars and the Great Depression's Lessons

The 1930s witnessed not only an economic crisis, but also a transformation of the international system fuelled, in part, by misguided political and trade decisions. This historical lesson, as the current case of Trump’s tariffs demonstrates, continues to be ignored by leaders who prioritise short-term populist measures over global economic stability. The post Tariffs, Trade Wars and the Great Depression’s Lessons appeared first on FlaglerLive.

The Great Depression of the 1930s motivated certain political currents in the United States to adopt strong economic protectionism. The iconic Smoot-Hawley Act, passed in 1930, raised tariffs to more than 20,000 foreign products, hoping to protect their domestic economy. However, its effect was devastating, both for global trade and for economies closely linked to the United States, as well as Mexico. There was a great economic impact on tariffs…