Today we dive into one of the most infamous pieces of economic legislation in American history: the Smoot-Hawley Tariff Act of 1930. Backed by Senator Reed Smoot and Representative Willis Hawley, this law was intended to protect American jobs and industries during the early days of the Great Depression. Instead? It made a bad situation much, much worse.

We break down:

• What a tariff actually is—and how it works in today’s global economy.

• Why Smoot and Hawley believed their bill would help America.

• How this policy triggered a global trade war, deepened the Depression, and caused ripple effects still felt today.

• And finally, how Donald Trump’s modern-day tariff policies echo this painful past—offering a warning about repeating history in the age of globalization.

If you’ve ever wondered how policy from nearly a century ago can still shape your grocery bill, your job, or your future, this episode is for you.

See Andrew Chang’s breakdown of Donald Trump’s Tariff calculations on CBC here.

Citations:

1. Britannica. (n.d.). Smoot-Hawley Tariff Act. Retrieved April 6, 2025, from https://www.britannica.com/topic/Smoot-Hawley-Tariff-Act

2. Biographical Directory of the United States Congress. (n.d.). Reed Smoot. Retrieved April 6, 2025, from https://bioguide.congress.gov/search/bio/S000644

3. Biographical Directory of the United States Congress. (n.d.). HAWLEY, Willis Chatman. Retrieved April 6, 2025, from https://bioguide.congress.gov/search/bio/H000379

4. Investopedia. (2011). What Is the Smoot-Hawley Tariff Act? History, Effect, and Reaction. Retrieved April 6, 2025, from https://www.investopedia.com/terms/s/smoot-hawley-tariff-act.asp

5. National Association of Manufacturers. (2025). Tariffs: 1930 Versus 2025. Retrieved April 6, 2025, from https://nam.org/tariffs-1930-versus-2015-33709/

6. American Express. (2023). What Is a Global Supply Chain?. Retrieved April 6, 2025, from https://www.americanexpress.com/en-us/business/trends-and-insights/articles/what-is-a-global-supply-chain/

7. Peterson Institute for International Economics. (2018). What Is Globalization?. Retrieved April 6, 2025, from https://www.piie.com/microsites/globalization/what-is-globalization

8. The White House. (2025). Fact Sheet: President Donald J. Trump Declares National Emergency to Increase Our Competitive Edge, Protect Our Sovereignty, and Strengthen Our National and Economic Security. Retrieved April 6, 2025, from https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/

9. Yale Budget Lab. (2025). The Fiscal, Economic, and Distributional Effects of All U.S. Tariffs Enacted in 2025 Through April. Retrieved April 6, 2025, from https://budgetlab.yale.edu/research/where-we-stand-fiscal-economic-and-distributional-effects-all-us-tariffs-enacted-2025-through-april

10. CBC News. (2025). What Trump’s sweeping tariffs mean for the US economy and you [Video]. Retrieved April 6, 2025, from https://www.cbc.ca/player/play/video/9.6711188

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