President Donald Trump announced the imposition of an additional 34% tariff on imports from China, on top of the already hefty 20% tariff on fentanyl imports, bringing the total tariff rate on some Chinese goods to an eye-watering 54%.
Add that to the still-breathing tariffs from the previous administration, and it’s safe to say that the U.S. is heading towards tariff rates nearing 70% on certain imports.
Who says Trump doesn’t deliver on his promises?
Vladimir Putin, undoubtedly beaming with glee from the Kremlin, must be thrilled with this latest act of economic self-sabotage. After all, why bother with traditional diplomatic measures when you can just slap tariffs on your way to economic oblivion?
Perhaps he’s hoping Trump will also add an extra dose of humor to the situation by declaring “Mission Accomplished” after hitting a staggering 60% tariff on Chinese imports, the same number Trump boasted about during his campaign.
It’s a fitting tribute to a man who never met an economic policy he didn’t want to hyperinflate.
For those unfamiliar with history (or just history with a flair for tragedy), these tariffs should sound eerily familiar. Let’s take a brief detour into the past and remember the Smoot-Hawley Tariff Act of 1930.
Designed to protect American farmers, it ended up being one of the key catalysts of the Great Depression. Back then, the economic genius of the day believed that isolating the U.S. through tariffs would somehow strengthen the domestic economy.
Spoiler alert: It didn’t. The Smoot-Hawley tariffs caused retaliation from other countries, leading to plummeting global trade and massive job losses.
But hey, at least it made the Depression “great” in terms of historical significance.
But not to worry!
Trump, a six-time business bankruptcy enthusiast, surely knows what he’s doing. After all, he’s an expert at turning things around, right? It’s not like his past ventures—casinos, airlines, and the infamous Trump Steaks—screamed success.
In fact, he’s practically a walking, talking case study for how to turn even the most promising businesses into a dusting of financial ashes. But maybe the art of the deal is just a little more abstract when you’re talking about global trade and not the latest Trump-branded failure.
Now, what of China? Well, let’s just say that Xi Jinping is unlikely to sit back and sip his tea while this trade war escalates.
In fact, the PRC’s reactions to previous tariffs—particularly the fentanyl tariffs—have demonstrated that their toolbox of economic retaliation is anything but empty.
More export controls on critical minerals, more tariffs, investigations into U.S. firms, and even the possibility of devaluing the Chinese yuan are all on the table.
So, while President Trump might think he’s hitting China where it hurts, he may soon discover that the communist Asian empire is very adept at handling the hurt—and dishing it right back.
In the meantime, here at home, American consumers and businesses will continue to feel the sting. Tariffs are, after all, just another form of tax—and those taxes are ultimately paid by consumers, not the foreign governments they’re aimed at. So, as the prices of everyday goods climb, and businesses begin to reel from higher costs, Trump’s tariffs will likely have the same charm as a flaming bag of dog poo on a doorstep. No matter how many times you stomp it out, it still stinks.
The silver lining? Well, it’s not entirely clear. But for now, the U.S. is entering a new chapter of economic misadventure, one where history might repeat itself, but this time with a louder, Trump-branded flourish.
And who knows? Maybe someday, we’ll be able to look back and laugh at how tariffs led to the kind of economic growth only a bankruptcy-prone reality TV star could envision. But until then, let’s raise a glass to the Smoot-Hawley 2.0, where we’re all just living through a rerun of a very, very bad idea. Cheers!