Trump’s Tariff Gambit: Lessons from Smoot-Hawley and Global Power Plays

The Smoot-Hawley Tariff Act of 1930, signed by President Hoover, raised U.S. import duties to shield businesses and farmers. Today, Trump leverages tariffs as a negotiation tool, aiming to restore U.S. economic dominance and mediate conflicts like Russia-Ukraine. Zelensky pushes for NATO membership, offering mineral deals, but Trump insists Ukraine will not join, countering NATO and EU plans for troop deployment. Stocks are plunging amid tariff fears, with recession odds rising from 20% to 60% this week. The Federal Reserve offers little relief.
Trump seeks to reposition the U.S. centrally, reversing Biden’s perceived retreat. Russian Treasury Secretary Dmitrieve’s U.S. talks signal cooperation, enabled by lifted sanctions, as Russia resumes gas distribution. Canada faces a 25% U.S. tariff, seen as a scare tactic, potentially shifting production south and unionizing the U.S. South. Companies like Hyundai, with U.S. plants, could adapt manufacturing. Previously, China dodged Trump’s tariffs via loopholes in Vietnam, Cambodia, Mexico, and Canada—loopholes he now aims to close. The TikTok sale deadline looms, bolstering Trump’s leverage. The text frames tariffs as both economic risk and strategic power, echoing Smoot-Hawley’s cautionary tale.

The Smoot-Hawley Tariff Act of 1930 signed into law by President Hoover, raised import duties on goods entering the US aiming to protect American businesses and farmers, but ultimately worsened the Great Depression by triggering retaliatory tariffs from other nations and significantly reducing international trade.
Trump is going to use all of the tariffs for negotiating. He is trying to negotiate a deal between Ukraine and Russia. Zelensky still wants to be in NATO. He thinks he has a bargaining chip and will give anyone that will get him into NATO the deal on minerals. Tariffs harm the weapons industry. Stocks plunge on new round of economic worry.
Trump says that Ukraine will not join NATO. Trump is working to put the US back in the center. Biden allowed the US to fall out of the picture. Russian treasury sect. Dmitrieve seeks cooperation with US landmark Washington talks. Russia is distributing gas again. We had to lift sanctions to allow the Russian delegation to come to America.
NATO and the EU want to put troops in Ukraine.
TikTok sale deal to come before Saturday deadline. Trump has negotiation power.
The Federal reserve is unlikely to resume markets and the economy from tariff turmoil anytime soon. Remember on monday we had a 20% of the storm of recession, Tuesday it was 30%, wednesday it was 50% and yesterday it was at 60%.
Canada knows that they just have to move production to 100 miles south. But there aren’t any car imports to Canada, the 25% tariff on our products is a fear tactic. The auto tariff could promote unionizing the south. Hyundai and Canada are in fear because all these companies have plants in the US already and could change the line to manufacturing. Trump has to stand strong and keep the cards.
When Trump created the tariffs on China they created loopholes and moved to Vietnam, Cambodia, Mexico, Canada. Trump is closing the loopholes.