The new trade regime will put in place the highest tariffs America has imposed since 1933, during the Smoot-Hawley era — a tariff bill that contributed to the deepening of the Great Depression. The higher tariffs threaten to disrupt the global economy again. Despite a milder-than-expected impact so far at home, there’s already some evidence Trump’s tariffs are — slowly — reigniting inflation and slowing the US economy.
That danger is why leaders of developed countries for decades have largely lowered tariff rates and welcomed globalization — actions that have fueled the services economy backed by Big Tech and finance, but have also contributed to the offshoring of factories and manufacturing jobs.
