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Front Burner The last time the U.S. tariffed the world
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Apr 10, 2025 Guest Asa McKercher, a historian and the Hudson Chair in Canada-U.S. Relations, dives into the complexities of U.S. tariffs, especially amid today's economic turmoil. He explores the infamous Smoot-Hawley Tariff Act of 1930 and its catastrophic effects during the Great Depression, offering vital lessons for modern protectionism. The discussion also highlights how current U.S. trade policies echo historical trends and examines the struggle of the working class in the face of evolving trade dynamics and automation's impact on manufacturing jobs.
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The 1929 Stock Market Crash
- The 1920s saw a booming stock market, but it crashed in 1929, causing widespread panic and investment drying up.
- This led to decreased production, consumption, layoffs, and plant closures, prompting the US Congress to consider tariffs.
Smoot-Hawley Tariffs
- The Smoot-Hawley Tariff Act of 1930, enacted to raise revenue and protect US industries, imposed tariffs on a wide range of products, averaging 20%.
- Trump's tariffs, while often exceeding 10%, are potentially larger in scale than the 1930 tariffs.
Global Trade Collapse
- After the Smoot-Hawley tariffs, other countries retaliated with their own tariffs, causing the global trading system to collapse.
- This significantly impacted US trade with Canada, reducing their $1.5 billion trade in 1929 to $400 million by 1933.