Seeing many KOLs say that the mutual tariff increases between China and the United States are fully priced in, I hope they can align their actions with their words, and not just use their mouths to defend the market.
Historically, after the U.S. economy fell into recession in 1929, Republican senators and representatives proposed the Smoot-Hawley Tariff Act, attempting to raise tariff barriers, reduce imports, and support domestic industries. The bill was signed into effect by Hoover in June of the following year.
This act triggered retaliatory tariffs from Canada and several European countries, causing global trade volumes to plummet by 60%, exacerbating the escalation of international financial and debt crises, and plunging the global economy into a deeper depression.
The moment the tariff policy took effect, the collapse of the macroeconomy had only just begun.
