It is not easy to win a trade war Mr. Trump

During this chaotic time mostly due to what is happening in the White House, one must remember History to be able to reject the newly announced Trump tariff on steel and aluminum.

            On June 17th 1930, the Smoot-Hawley tariff was signed into law at the beginning of a recession triggered by the crash on Wall Street in October 1929. The act raised tariffs on over 20 000 imported goods; this bill was sponsored by Senator Reid Smoot and Representative Willis C. Hawley to supposedly bring back jobs to the U.S which was suffering already from a 10% unemployment rate.

            The passage of the tariff law exacerbated the Great Depression. Soon after, Canada and most of the industrialized countries, raised their own tariffs in retaliation after the U.S bill had become law.

            President Hoover at the time, contrary to Donald Trump who initiated the recent proposal, opposed the bill calling it “vicious, extortionate and obnoxious” because it would undermine international cooperation. President Hoover however, yielded to influence from his own Republican party and signed the bill.

Soon a tariff war engulfed the industrialized countries, international trade declined abruptly and by 1931* the Great Depression was on around the world.

* By 1933, World Trade had collapsed by 60%