Tariffs: Comparing The Past
Tariffs Then & Now: Hoover vs. Trump’s 2025 Trade War
By Luke Schuster | February 2, 2025
At The MLO BROS, we tend to shy away from national politics—until we start reading posts and comments that are horribly inaccurate and biased. This article is not about pushing an agenda but rather shedding light on recent events and how they compare to history.
Hoover’s 1930 Tariffs: A Depression Disaster
In 1930, President Herbert Hoover signed the Smoot-Hawley Tariff Act, raising duties on over 20,000 imported goods to protect American farmers and manufacturers. It was meant to be a lifeline during the early years of the Great Depression—but instead, it made things worse.
Countries around the world retaliated with their own tariffs, effectively shutting down global trade. American farmers, who relied on exports, saw their markets vanish overnight. The economy, already reeling from the 1929 stock market crash, sank further into a historic collapse.
Trump’s 2025 Tariffs: A Trade War Redux?
Fast forward to February 1, 2025, and Donald Trump, now back in the White House, is taking a page from history—but with a modern twist. His administration has announced new tariffs, including:
25% on imports from Canada and Mexico
10% on imports from China
Trump claims these measures are designed to protect American jobs, address illegal immigration, and fight drug trafficking. “We are bringing back economic power to the U.S.,” Trump stated during a press conference. “These tariffs will make America rich again.”
Canada & Mexico Strike Back
Unlike in 1930, when many countries retaliated slowly, Canada and Mexico aren’t wasting time in hitting back against Trump’s tariffs.
Canada’s Response:
Prime Minister Justin Trudeau has imposed 25% tariffs on $155 billion worth of U.S. goods, including alcohol, appliances, furniture, and sports equipment.
Ontario and Nova Scotia have taken additional action, banning U.S. alcohol sales and raising tolls for American commercial trucks.
Mexico’s Response:
President Claudia Sheinbaum has ordered retaliatory tariffs against the U.S., though specific targets haven’t yet been announced.
The rapid response from America’s closest trade partners suggests that this trade war could escalate fast, potentially disrupting supply chains and raising prices for consumers across North America.
Will History Repeat Itself?
The big question now is: Will Trump’s tariffs help the economy, or will they backfire like Hoover’s? Economists are divided. Some argue the tariffs could bring back manufacturing jobs, while others warn that higher prices on goods could hurt consumers.
Already, Canada and Mexico’s swift countermeasures suggest that American businesses and consumers could feel the pinch soon. If history is any indication, economic policy can be unpredictable—and tariffs have a long track record of creating more problems than they solve.
With Trump’s tariffs set to take effect on February 4, 2025, the world is watching closely. Whether this will be a bold economic win or a costly mistake remains to be seen.
