Tariffs and trade wars bring back old lessons

The Trump trade war officially started in March. What will it be like? It's not advisable to second guess someone as unpredictable as President Donald Trump, but history can sometimes help show what the future may be like. In his inaugural address, President Trump harked back to William McKinley, the 25th US president, who was in office from 1897 until he was assassinated in 1901. "I will, very simply, put America first...America will soon be greater, stronger, and far more exceptional than ever before...America will be a manufacturing nation once again...I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens...President McKinley made our country very rich through tariffs and talent...The American dream will soon be back and thriving like never before...The future is ours, and our golden age has just begun," Trump said at his inauguration. (For reference: https://bit.ly/4bEVMY8). A century ago, President Trump's role model, William McKinley, presided over a high-tariff regime designed to protect domestic American industries. Drawing parallels with McKinley's tariff plans makes little sense in today's world because there were no personal or corporate income taxes back then. Nor could exporting countries back then fall bac

This article was originally published on April 01, 2025.