US President-elect Donald Trump plans to impose aggressive tariffs on foreign goods, with a 20% levy on imports. His supporters believe this will boost US manufacturing and create jobs. However, critics argue that it may lead to inflation, unemployment, and even recession.
History suggests that such tariffs can have negative consequences. The Smoot-Hawley Tariff Act of 1930 raised US tariffs on various imports, leading to a global trade war. Economist Desmond Lachman warned that Trump’s proposed import tariff policy could follow a similar path.
Source: https://www.foreignaffairs.com/united-states/how-tariffs-can-help-america