Smooth Hawley Tariff Act of 1930 They tried this nearly 100 years ago and it completely failed...it actually lengthened the great depression and caused a 65% reduction in global trade. We will fail again..... https://www.britannica.com/topic/Smoot-Hawley-Tariff-Act
Yes that's the plan, collapse EU banking and make them twice as Nazi as they already are. If tariffs are so bad why does everyone else have them. We should close most of our military bases, forcing the world to spend money on defense.
I didn't ask when fdr mitigated its effects. Is it that other countries are permitted to impose the tariffs but not the US?
lol, let me put it this wasy, every sovereign country can impose tariffs. the best negotiated outcome is the low tariffs are good for global trade. tariff is a tax on its own citizens.
There is a case to be made for some moderate tariffs in some sectors with some countries. Which was basically the system before last week. This is so particularly in food/agri (food security), strategic sectors (steel, energy, defence) and with some countries who do actually cheat (most infamously China). But even tariff advocates are appaled by Trump's move, because it makes no sense, they pulled the numbers out of their asses and they're declaring (trade) war against the whole world at the same time, which usually is a sure way to get your ass handed to you, but hey, USA, USA! Trump is not trying to rebalance the US trade balance or rearrange world trade patterns, this is just a shakedown of 1) small/weak countries that will have to buy Trump's goodwill to get an exemption, 2) US companies, same same and 3) US consumers who, whether they realize it or not have just been hit with a 25% federal sales tax. Good luck getting out of this one.
There is one major difference with Smooth Hawley: then it was everyone against everyone and everyone lost. Now it's the USA against everyone... that only works in the movies. Gift article: Make Smuggling Great Again https://www.theatlantic.com/ideas/a...opy-link&utm_medium=social&utm_campaign=share
Yes it will be a complete failure.... I hope we find out sooner or later because uncertainty is going to wreck this economy.
I have seen some interesting solutions to the US trade-deficit. One was to make credit card companies refuse to transact purchases to foreign products, lol. I can imagine Bitcoin will be used a lot more after that one though... maybe it's already baked in and why Bitcoin went on a rally on Friday while the Vix was at a devastating 45+