President Donald Trump News announced rates On Wednesday in imports, saying that the measures will help promote North -American manufacturing, but experts say it will increase prices for North -Americans.
Representative Willis C. Hawley was an Oregon Republican who sponsored the 1930’s Smoot-Hawley Rate Act. The law increased homework, launched a trade war and is considered to have improved the negative impact of great depression on many Americans.
One of the offspring of a legislator is criticized by Trump’s rates that helped introduce rates in 1930
Carey Stewart Cezar, a retired nurse who is Hawley’s great -granddaughter, has compared the 1930 law with the new Trump rates to imports.
“I think it’s a terrible and potentially devastating idea,” he said News NBC. “I think people do not remember all the bad caused by the rates of our history.”
The 70 -year -old said that his family’s legacy was part of his education.
“The act of Smoot-Hawley is part of my family’s story and I learned as a child,” he said.
Cezar said that his mother was “deeply embarrassed” of his last name, as the law had an impact on the economy. He was able to change his name when he married.
Cezar added that he has already noticed the impact of Trump’s tariff plans on his own life. His retirement account of 401 (K) has lost about 10% of his value.
Experts say the rates will have a greater impact on the economy than the Smoot-Hawley Rate Act
At that time, the 1930 Law was “one of the most controversial fares ever promoted by Congress,” wrote the Dartmouth College Doug Irwin Economics Professor in 2020, according to NBC News.
He added that today’s impact will be greater as imports of goods and services represent 14% of the current gross domestic product in the United States. That triple the quota they represented in 1930.
“This will be much larger than Smoot-Hawley,” he said Bloomberg. “Imports are a much larger part of GDP than in the early 1930’s for a long shot.”
Other countries are preparing for their own economies to be affected by Trump’s rates
President of the European Central Bank Christine Lagarde told EU leaders to prepare for a worse case in the event that the United States begins an international economic conflict, according to Bloomberg. Canada also works to make changes to his exports. The country has had a trade agreement with the United States since the 1980’s.
“The old relationship we had with the United States, based on the integration of our economies and narrow military security and cooperation, is over,” said Prime Minister Mark Carney, according to Bloomberg.
