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Trump’s trade war raises the spectre of the 1930s global depression

The US president’s universal tariffs mirror the disastrous Smoot-Hawley Act that triggered retaliatory measures, collapsed international trade, fuelled political extremism — and led to world war, warns Dr DYLAN MURPHY

President Donald Trump speaks at a reception celebrating Women's History Month in the East Room of the White House, Wednesday, March 26, 2025, in Washington

ON April 2, Donald Trump launched his universal tariff trade war against the rest of the world. Following a massive sell-off in US Treasury bonds, the Trump regime has been forced to halt its universal trade tariffs for 90 days.

Numerous titans of Wall Street, from Jamie Dimon, head of JP Morgan, the biggest bank in the US, to Larry Fink, CEO of the world’s biggest investment fund, BlackRock, have warned of the grave dangers posed by Trump’s trade war. Both are saying that the current climate of anxiety and uncertainty is similar to the 2008 global financial crisis, when the financial system almost shut down.

Several governors of the US Federal Reserve, the most powerful central bank in the world, have expressed major concerns that the tariffs will drive up inflation and slow the economy. For despite the 90-day pause in the universal tariffs on 75 nations, the US effective tariff rate is 27 per cent, which is the highest since 1903.

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