– I don't understand what the president [Donald Trump] He tries to achieve these tariffs. It doesn't make sense. The market suffers, people suffer from this – says in an interview with the portal “Blick” Peter Tuchman, one of the most famous investors on Wall Street in history.
Trump's policy is not the first case of the use of duties in US history. During the great economic crisis, the Americans introduced the “Smoot-Hawley Tariff Act” act in 1930. It led to a drastic growth of American duties to over 20 thousand. products.
In the context of the “Liberation Day” announced by Trump, the act of 1930 is currently recalled. It was supported by the Republican Senator Reed Smoot (1862-1941) and the Republican Congressmen of Willis C. Hawley (1864-1941).
In response to a patronist United States course in the 1930s, many countries introduced retaliation. Among them were Canada, Mexico, France, Italy, Australia and Switzerland.
As a result, American import in 1929-1933 fell by 66 percent. – from $ 4.4 billion up to $ 1.5 billion American exports dropped by 61 percent, from 5.4 to $ 2.1 billion.
Continuation of the material under the video
Today, economists agree that this inheritance in trade – caused by the American criminal duties – significantly tightened the effects of the global economic crisis. Like today, many experts at that time pointed to problems that the trade war could cause.
For example, in May 1930, over 1,000 economists signed a petition against the Smoot-Hawley Tariff Act. Henry Ford (1863-1947), founder of the American brand of Ford, described the act as “economic madness”.
The unemployed queue in New York during the great crisis (illustrative photos)
Will Donald Trump remember?
The wrong assessment of politicians at that time had personal consequences for them. Both Reed Smoot and Willis C. Hawley lost their places in Congress in the 1932 election.
Trump will have to face the consequences of the escalation of the trade war and perhaps he will answer politically in two years. The mid -term elections in the US will take place in November 2026.
It is possible, however, that by that time the issue of customs duties will already belong to the past, because, unlike the 1930s, the US Congress has not yet adopted any provisions. Instead, Trump ordered duties by decree – i.e. without the participation of the congress. This gives him flexibility in fast abolishing or further increasing the tariffs.
Pressure is already growing: action markets around the world have fallen rapidly after Trump's customs announced.
It seems that in the current situation to Donald Trump you can have one appeal: it's time to read the book, Mr. President, preferably historical!
“America's Liberation Day”
“We have very good news. A lot of good things are happening in our country. This is a day of liberation. We waited a long time for it. On April 2, 2025, it will be remembered forever, because American industry will be reborn,” said Donald Trump, announcing customs. Earlier he announced that he would do it on April 2, and he called that day “the day of liberation of America”.
The US president announced that the US will introduce a minimum 10 % from April 5. duties on imports from all countries. He confirmed, however, that from April 9 the United States would introduce even higher duties for a specific group of countries.
In the case of the European Union it will be 20 percent. As for the People's Republic of China, it will be 34 percent. Higher duties will not be avoided, among others, by Switzerland (31 percent), India (26 percent), South Korea (25 percent) and Japan (24 %).
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.
