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Trade War: How Tariffs Tanked the Economy

Trumps trade war: like playing Jenga with the global economy Spoiler alert: the tower falls Tariffs hurt everyone not just the other guys

TL;DR

Trump’s 2025 trade war, driven by steel and aluminum tariffs, triggered global retaliation and harmed U.S. businesses and consumers—proving protectionism is a dangerous game.

Story

Trump’s trade war, a saga of tariffs and retaliation, kicked off in 2025 with a bang—and a hefty price tag. He slapped tariffs on steel and aluminum imports, claiming it would protect American jobs. Sounds good, right? History tells a different story. Think Smoot-Hawley in the 1930s—tariffs intended to shield the U.S. from the Great Depression but instead helped worsen it globally.

How did Trump’s trade war work? Imagine a playground bully grabbing everyone’s toys. Other countries retaliated with their own tariffs on U.S. goods, targeting iconic American products like whiskey, boats, and jeans. These counter-tariffs hurt U.S. businesses and consumers. ‣ Tariff: A tax on imported goods.

The impact was widespread. Small businesses felt the squeeze, their confidence plummeting. Consumers faced higher prices, and the stock market reacted with understandable anxiety. One Reddit user commented, “Puts on America.” Not exactly a vote of confidence.

Canada, a close U.S. ally, considered restricting oil exports to the U.S. as a countermeasure. Remember, trade is a two-way street. Disrupting it hurts everyone involved. Trump’s actions weren’t just economic folly; they strained relationships with key allies.

What can we learn? Protectionist policies rarely work as intended. They often backfire, hurting the very people they’re supposed to help. Like a game of Jenga, tampering with global trade can topple the whole tower.

Advice

Don’t fall for the “protectionist” rhetoric. Tariffs rarely protect; they mostly disrupt and destroy.

Source

https://www.reddit.com/r/wallstreetbets/comments/1j9cnan/trumps_steel_aluminum_tariffs_take_effect_as/

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