More Tariffs: The Economic Wrecking Ball

The favorite economic bludgeon of leaders who think trade is a zero-sum game and that slapping taxes on imports will somehow make their country stronger are tariffs. Spoiler: It rarely—if ever—works. But don’t let a little thing like history get in the way of economic delusions! Since time immemorial, tariffs have been the go-to move for politicians who don’t want to deal with the real causes of economic woes, and history is littered with examples of this backfiring spectacularly. So, let’s take a journey through some of the greatest hits of tariff disasters—because if there’s one thing humans excel at, it’s repeating the same mistakes while pretending it’s a brilliant new idea.

The Smoot-Hawley Tariff (1930) – The Granddaddy of Economic Self-Owns
Ah, nothing like a good, old-fashioned economic depression to get politicians thinking, You know what would help? Making everything more expensive! Smoot-Hawley was supposed to protect American farmers and manufacturers by slapping tariffs on over 20,000 imported goods. Instead, other countries responded in kind, international trade collapsed by 65%, and the Great Depression got way worse. Turns out, if you shut down global markets, businesses don’t thrive. Who knew?

Britain’s Corn Laws (1815-1846) – Starve Your Own People, But Make It Fancy
The British aristocracy thought it would be just fabulous to slap massive tariffs on imported grain to protect their own landowners. The result? Sky-high food prices and mass starvation. Because if there’s one thing history teaches us, it’s that rich landowners will absolutely ruin an economy to protect their profit margins. After only three decades of hunger and riots, the Corn Laws were finally repealed, and suddenly, people could afford to eat again. What a concept!

The Tariff of Abominations (1828) – Even the Name is a Warning
The U.S. passed this gem to protect Northern industries, and the South hated it so much that it almost led to secession. South Carolina even started floating the idea of nullification, because nothing says “good policy” like pushing your own country toward civil war. Eventually, Andrew Jackson had to de-escalate the situation before it turned into a full-blown national crisis. So yeah, great move all around.

France’s Tariff Wars with Italy (1887) – Because Fighting with Your Neighbor is Fun
In the late 1800s, France thought it would be a brilliant idea to impose tariffs on Italian wine, fruits, and vegetables. Italy, being a rational actor, responded by slapping tariffs on French goods. The result? French farmers went bankrupt, Italy’s economy took a nosedive, and trade between the two countries fell by more than half. Because nothing screams “economic strategy” like tanking two economies at once.

Argentina’s Peronist Tariffs (1946-Present) – A Masterclass in Economic Self-Sabotage
Juan Perón and his successors have loved using tariffs to protect domestic industries, and Argentina’s economy has really benefited. Oh wait, no, it’s been stuck in an endless cycle of inflation, stagnation, and collapse. Who could have guessed that isolating yourself from global markets and making imports outrageously expensive wouldn’t lead to long-term prosperity? Answer: Everyone but Argentina’s government

Japan’s Edo Period (1603-1868) – The Ultimate Isolation Experiment

Japan spent over two centuries restricting imports to “protect” its economy, and it worked wonders—if by wonders, you mean technological stagnation and falling behind the rest of the world. By the time the U.S. Navy showed up in 1853 with big guns and even bigger economic pressure, Japan realized it had spent 250 years getting absolutely nowhere. But hey, at least they had really nice samurai swords.

Brazil’s Tariff-Heavy Industrial Policy (1950s-1980s) – Protecting Jobs by Killing Growth
Brazil decided in the mid-20th century that the best way to develop its industries was to jack up tariffs so high that foreign competition was basically illegal. The result? Brazilian industries got bloated, inefficient, and uncompetitive on the global stage. Meanwhile, consumers paid through the nose for low-quality, overpriced goods. By the 1990s, Brazil had to undo the whole mess because, shockingly, trade actually matters.

Trump’s Trade War (2018-2021) – The Art of the (Bad) Deal
Modern history! Trump decided to slap tariffs on Chinese imports, promising that China would pay for them. Unfortunately, basic economics disagreed. U.S. businesses and consumers bore the brunt of the costs, retaliatory tariffs hit American farmers hard, and manufacturing jobs didn’t exactly flood back. In the end, Trump’s own administration ended up bailing out farmers for tens of billions because—surprise!—China stopped buying their crops. A truly stable genius at work.

India’s “Self-Reliant” Tariff Policies (2020-Present) – Learning from the Worst
Inspired by… something, India decided to jack up tariffs on everything from electronics to solar panels to promote domestic production. The result? Indian businesses still struggled, foreign companies found workarounds, and consumers had to pay more for everything. But hey, nothing screams “independence” like making your own citizens pay higher prices!

The European Union’s Agricultural Tariffs – Making Food Expensive for Fun
The EU loves protecting its farmers with high tariffs, especially on products like sugar, dairy, and meat. The winners? Large agribusinesses that pocket subsidies. The losers? Pretty much everyone else—especially consumers in both Europe and developing nations. But who cares about logic when you can keep farmers happy and elections predictable?

Final Thoughts: Tariffs – The Economic Policy That Just Won’t Die
So, here we are, centuries of evidence later, and tariffs still get trotted out like some kind of economic cure-all. They protect a few industries for a little while, sure. But they also raise prices, kill exports, and spark trade wars. But hey, why learn from history when you can just repeat it in increasingly dumb ways?

Stay tuned for the next installment of Rinse and Repeat, where we’ll probably be laughing at yet another genius politician trying to “fix” the economy with more economic self-sabotage.

Be sure to check the Krotchett Podcast on your favorite provide here or over at YouTube!