The Briefing Room What's Trump's tariff hokey cokey all about?
Apr 10, 2025
In this discussion, Mehreen Khan, the Economics editor of The Times, and Meredith Crowley, a Professor of Economics at the University of Cambridge, tackle the complexities of Donald Trump's recent tariffs. They explore the historical context of tariffs, comparing Trump's approach to past strategies like McKinley's. The duo delves into the intricacies of the World Trade Organization's role and the evolving nature of U.S. trade policies, including the implications for domestic manufacturing and global markets.
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McKinley's Tariff Legacy
- President McKinley, a Republican icon, championed tariffs during his time (1897-1901).
- Trump invoked McKinley, highlighting his tariff policies and wealth creation.
Smoot-Hawley Tariff Act
- The Smoot-Hawley Tariff Act of 1930, intended to protect US industry, worsened the Great Depression.
- Retaliatory tariffs from other countries exacerbated the economic downturn.
Reciprocal Trade and the WTO
- Post-WWII, the US shifted towards reciprocal trade agreements, reducing tariffs in exchange for similar concessions from other countries.
- This approach fostered global trade liberalization, culminating in the 1994 establishment of the World Trade Organization (WTO).
