Robert Reich: The last tariff increase 'ended up worsening the Great Depression'

26 November 2024

Former Labor Secretary Robert Reich on Tuesday explained the impact Donald Trump's new tariff plan could have on American families, predicting the countries that fall under the president-elect's tariff enforcements will likely retaliate.

Speaking with Reich on the latest episode of MSNBC's The ReidOut, host Joy Reid noted that some economists say under Trump's tariff plan, "The average American household is going to spend $2600 a year."

However, Reich corrected the MSNBC host, saying: "That $2600 family estimate was made in August, before we knew how large the tariffs are going to be." The ex-labor secretary added, "I think the actual per family estimated cost is probably closer now to $4000."

Reid then noted that America's largest trading partners include China, Canada, Mexico — all of which fall under the MAGA leader's tariff plan.

"If we slap a massive tariff, Robert, on those countries, what would they do? What might they do in return?" Reid asked.

"Well, they will do exactly what countries did in 1930," the ex-President Bill Clinton administration official replied. "1930 was the last time we had a big, across-the-board tariff increase, and that was from Herbert Hoover. Remember President Herbert Hoover?" he asked.

Reich continued, "That resulted in retaliatory tariffs — other countries retaliating against us for putting tariffs on their goods. And those retaliations — those tariff wars — ended up worsening the Great Depression."

Watch the video below or at this link.

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