In this episode of the Planet Money podcast, the hosts take a closer look at the notorious Smoot-Hawley Tariff Act of 1930, using it as a warning about the dangers of sweeping tariffs. Originally designed to support farmers, the act quickly escalated into steep tariffs on hundreds of products, triggering global backlash, reducing trade, and worsening the Great Depression. The discussion then shifts to the tariffs introduced during Trump's first term, drawing parallels to Smoot-Hawley and highlighting their similar adverse effects on American consumers. The episode also emphasizes the significant authority the president now wields over tariff decisions, shaped by the lessons learned from the Smoot-Hawley experience.
