<p>The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs, leading to a contraction in global trade and exacerbating the Great Depression. During the Great Depression, U.S. GDP fell by 45%, and the unemployment rate soared to 24.9%. Capital markets performed poorly, with the stock market experiencing significant declines, while gold and the U.S. dollar performed relatively better. It wasn't until 1934, when Roosevelt signed the Reciprocal Trade Agreements Act, that this chaotic situation came to an end</p>

- The Smoot-Hawley Tariff Act of 1930 raised tariffs on over 20,000 goods, worsening the Great Depression by shrinking global trade by two-thirds.  
- The current trade war under the Trump administration could see U.S. tariffs reach their highest levels in a century, raising concerns about a potential economic downturn.  
- Unlike the 1930s, today's trade policies are implemented more swiftly, and the U.S. economy is less reliant on global trade, suggesting a potentially smaller impact from current tariffs.

The Tragedy of the Trade War in 1930