Will Trump's tariffs lead to an economic recession?

[Anonymous]

I've read that in 1930, president Herbert Hoover signed the Smoot–Hawley Tariff Act, which implemented tariffs on foreign goods. The intent was to protect American employment and manufacturing. As a result, other countries implemented retaliatory tariffs, which led to a trade deficit, which was one of the causes of The Great Depression.

I believe we should learn from history not to make the same mistakes. However, with Trump's tariffs are making me worry that history will be repeating itself.

Many Americans voted for Trump in 2024 because they honestly thought he would make the economy better. They saw the economy was good under Trumps 1st term and inflation under Biden. However, I'm not seeing improvement in the economy and cost of living. If anything, I can name several items that became more expensive as a result of Trump's tariffs.

[Anonymous]

No.

[Anonymous]

Trumps tariffs will lead to:

1) The dollar losing its appeal as the reserve currency. The weaker dollars will make imports more expensive to US consumers.
2) Higher interest rates as fewer dollars circulate among foreign treasuries. Those dollars were normally used to buy US bonds. As the demand for bonds falls, interest rates increase.
3) Lower exports for US businesses as countries turn away from trading with the US.
4) China getting stronger as countries turn away from the US.

None of this is good for the US economy.

[Anonymous]

Yes. It’s already happening.

Only the biggest of morons didn’t foresee this.

FOX: “GM shares T-boned by tariffs. The stock is diving 7% after the auto giant reported a 32% slump in quarterly profits due to a $1.1 billion hit from (Trump’s) tariffs, which GM says will worsen…”

[Anonymous]

Anonymous wrote:Yes. It’s already happening.

Only the biggest of morons didn’t foresee this.

FOX: “GM shares T-boned by tariffs. The stock is diving 7% after the auto giant reported a 32% slump in quarterly profits due to a $1.1 billion hit from (Trump’s) tariffs, which GM says will worsen…”

this

inflation is ticking up
companies are cutting profit projections
layoffs are already happening

[Anonymous]

https://www.dcurbanmom.com/jforum/posts/list/1230452.page

There is a whole thread on this.

[Anonymous]

The stock market crashed as passage of Smoot Hawley became more likely.

Now the stock market is going up.

There were much bigger tariffs decades before Smoot Hawley.

[Anonymous]

Anonymous wrote:The stock market crashed as passage of Smoot Hawley became more likely.

Now the stock market is going up.

There were much bigger tariffs decades before Smoot Hawley.

and no income tax, so the burden of funding the government was on the american consumer and the rich basically got a lot richer and that imbalance eventually sunk the US economy, particularly as the stock market went crazy for companies like Radio Corporation of America (RCA).

[jsteele]

https://www.dcurbanmom.com/jforum/posts/list/1230452.page