Critics of tariffs often cite the Smoot-Hawley Tariff Act of the 1930s as evidence that such measures can damage the U.S. economy. While I acknowledge this historical impact, it’s crucial to recognize that the global economic landscape has evolved significantly since then.
Here’s why the proposed tariffs by President-elect Trump might not have the same detrimental effects today:
Due to significant technological, infrastructural and economic changes, today’s tariffs will likely foster different outcomes from those of the 1930s. They could drive innovation, encourage domestic production through automation and realign global supply chains to friendlier countries, a process that was unimaginable a century ago.
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