Trump’s tariffs could bring 1930s-style depression
An escalating trade war could spiral out of control and bring the world to the brink of an economic collapse on the scale of the Great Depression of the 1930s, said John Doody, founder of Gold Stock Analyst.
“We’re going to get a replay, to some extent, of the 1930s episode where the U.S. put the Smoot-Hawley Tariff Act, imposed taxes on 20,000 imports, and basically made what was going to be a recession into a depression,” Doody told Kitco News.
The Smoot-Hawley Tariff Act was enacted in June 1930 and raised existing import tariffs to as high as 50%. Historians and economists have mostly criticized the protectionist bill as having exacerbated problems in an already strained U.S. economy at the time, ultimately leading to the worst economic depression in American history.
Doody’s comments come as the Trump administration prepares to put into place tariffs on $34 billion on Chinese goods at midnight Eastern Standard Time on Friday…