Waiting on Xi
“This is one of the most important days in American history. It’s our declaration of economic independence. Jobs and factories will come roaring back into our country, and you see it happening already. We will supercharge our domestic industrial base.”
President Donald Trump announces unilateral tariffs on 180 countries despite warnings of inflation, recession and supply chain disruptions, April 2, 2025
This is probably the worst economic policy I’ve ever seen…. There is no way that this policy will bring manufacturing back to the United States and “make America wealthy again”… if anything, it’ll make us much poorer. Many are saying that this tariff policy is the “end of globalization”. I don’t think so….. This is the end of America’s participation in globalization….
Molson Hart@Molson_Hart, Founder and CEO of Viahart, a consumer products company
The purpose of President Trump’s tariff policy is not what he says it is. If the goal of the tariffs was to reindustrialize the country and create more jobs in manufacturing, the announcement would have been accompanied by an industrial policy that would outline a coordinated government effort to rebuild America’s critical industries. It would have provided details on tax incentives, infrastructure investment, workforce training, government subsidies and R&D funding; all aimed at achieving Trump’s stated objectives. By now—late April—Trump would have made numerous public appearances with important banking and business leaders who would have expressed their support for this ambitious project of rebuilding the country into a manufacturing powerhouse. Trump also would have presented an overview of the many public-private agreements that had been made with wealthy capitalists who supported the idea and wanted to participate in its implementation.
But none of these things have happened, because there is no industrial policy; just as there is no expectation that the imposition of onerous duties on foreign imports will magically “bring jobs back to America”. It’s all a pipedream aimed at hoodwinking the public. So, what is the tariffs business really all about? Here’s how the WSWS answers that question:
The real purpose of Trump’s tariffs (in the words of socialist Tom Hall) is “to prepare supply chains for world war, especially against China.” (The administration) “is promoting a policy which recalls the darkest period of the 20th century under the Nazis, where trade war preceded the outbreak of World War II in September 1939.” World Socialist Web Site
We find this analysis compelling, but not particularly believable. True, Trump has failed to back his tariff edicts with any solid proposals for rebuilding America’s anemic industrial base. But that doesn’t mean he’s gearing up for a war with China. That seems like a bit of a stretch. Even so, it’s worth putting the question to Grok to see if the historical analogy is accurate.
Question—Did Hitler use the trade war to strengthen supply lines to Germany before the war?
Grok—Yes, Hitler exploited the global trade war and economic turmoil of the 1930s to strengthen Germany’s supply lines and prepare for war. The Smoot-Hawley Tariff Act and subsequent retaliatory tariffs by other nations disrupted global trade, creating opportunities for Germany to pursue autarky (economic self-sufficiency) and secure strategic resources through bilateral agreements. Here’s how:
Hitler’s regime aimed to reduce reliance on imports by boosting domestic production, particularly in agriculture and synthetic materials (e.g., fuel, rubber). The Nazi “Four-Year Plan” (1936) prioritized rearmament and self-sufficiency to insulate Germany from trade disruptions.
Bilateral Trade Agreements: With global trade hampered, Germany negotiated barter deals with smaller nations, especially in Eastern Europe and the Balkans….
Exploiting Weakened Economies: The trade war weakened economies globally, making countries more willing to trade with Germany on favor
Article from LewRockwell
LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
