The cycle of history is unfolding! The Great Depression of 1929 → the Smoot-Hawley Tariff Act of 1930 → global trade wars → the outbreak of World War II. And today, the United States is repeating the mistakes of the past! Tariffs are unlikely to make American manufacturing great again.
【Lessons from History】 In 1929, the Dow plunged by 40 percent, and the Hoover administration raised tariffs on more than 20,000 goods to 50 percent to protect domestic industries. 1,028 economists jointly opposed, and Ford and Morgan begged to no avail. Outcome: U.S. exports plummeted 85% (5.4 billion→780 million). Global trade shrank by 70% and the Great Depression intensified. Fascism rises and World War II breaks out.
【Today's Crisis】 Trump proclaimed to "make America great again" but copied the Hoover policy: Deportation of immigrants, imposition of tariffs and tax cuts. In April 2025, the U.S. announced "reciprocal tariffs" on the world, with the average tax rate soaring to 30%, a century-high high. History is repeating itself: Eggs cost $1 per egg in the United States, and only $0.65 in China. A lighter costs $3 in the United States and 7 cents in China. Reshoring of manufacturing? U.S. supply chains have long been fragmented.
【The Trap of Deglobalization】 Allies such as the European Union and Canada fought back, and global trade volume growth plummeted to 0.8% (close to the level of the 2008 financial crisis). Fed Warning: Tariffs push inflation up 2.1%. U.S. GDP growth may fall by 1%. The consumer becomes the ultimate payer.
【Mirror of History】 From 1930 to 2025, trade protectionism never brought prosperity, only ignited hatred and war. When the U.S. wields the stick of tariffs, and the U.S. prospers again? 1929-1933: U.S. exports from $5.4 billion→780 million (-85%). When the U.S. raised the average tariff to 59 percent through the Smoot-Hawley Tariff Act, global trade plummeted by 66.7 percent in four years, and U.S. auto exports to Europe plummeted by 80 percent.
The cycle of history is unfolding! The Great Depression of 1929 → the Smoot-Hawley Tariff Act of 1930 → global trade wars → the outbreak of World War II. And today, the United States is repeating the mistakes of the past! Tariffs are unlikely to make American manufacturing great again.
【Lessons from History】 In 1929, the Dow plunged by 40 percent, and the Hoover administration raised tariffs on more than 20,000 goods to 50 percent to protect domestic industries. 1,028 economists jointly opposed, and Ford and Morgan begged to no avail. Outcome: U.S. exports plummeted 85% (5.4 billion→780 million). Global trade shrank by 70% and the Great Depression intensified. Fascism rises and World War II breaks out.
【Today's Crisis】 Trump proclaimed to "make America great again" but copied the Hoover policy: Deportation of immigrants, imposition of tariffs and tax cuts. In April 2025, the U.S. announced "reciprocal tariffs" on the world, with the average tax rate soaring to 30%, a century-high high. History is repeating itself: Eggs cost $1 per egg in the United States, and only $0.09 in China. A lighter costs $3 in the United States and 7 cents in China. Reshoring of manufacturing? U.S. supply chains have long been fragmented.
【The Trap of Deglobalization】 Allies such as the European Union and Canada fought back, and global trade volume growth plummeted to 0.8% (close to the level of the 2008 financial crisis). Fed Warning: Tariffs push inflation up 2.1%. U.S. GDP growth may fall by 1%. The consumer becomes the ultimate payer.
【Mirror of History】 From 1930 to 2025, trade protectionism never brought prosperity, only ignited hatred and war. When the U.S. wields the stick of tariffs, and the U.S. prospers again? 1929-1933: U.S. exports from $5.4 billion→780 million (-85%). When the U.S. raised the average tariff to 59 percent through the Smoot-Hawley Tariff Act, global trade plummeted by 66.7 percent in four years, and U.S. auto exports to Europe plummeted by 80 percent.