r/wallstreetbets • u/MikeMikeGaming AI bubble survivor • Jan 28 '25

News Trump To Tariff Chips Made In Taiwan, Targeting TSMC

https://au.pcmag.com/computers-electronics/109466/trump-to-tariff-chips-made-in-taiwan-targeting-tsmc

Why don't we kick Nvidia while it's down am I rite?

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u/Fluffy_WAR_Bunny Jan 28 '25

Last time America had a tariff war, we got Hoovervilles and the Great Depression. People think it was the stock market crash that caused the Great Depression. Lol.

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u/Dr_Schmoctor Jan 28 '25

The stock market crash was the trigger though (1929), the tariffs came later (1930). The overall cause is more like a combination of 4 main factors: stock market crash, unemployment, fragile post World War I global economy, and yes, the trade war.

The initial trigger of the Great Depression was the stock market crash in October 1929. This created a loss of confidence in the economy and led to bank failures due to bad loans and the loss of depositors' money.

During the 1920s, there was overproduction in agriculture and manufacturing. The demand for goods could not keep up, leading to widespread job losses.

The global economy was already fragile due to the aftermath of WWI and the reparations imposed on Germany. Many countries were struggling with their debts and economic instability.

A major event in 1930 was the passing of the Smoot-Hawley Tariff in the US. This tariff raised duties on thousands of imported goods, aiming to protect American industries. In response, many countries imposed retaliatory tariffs, leading to a sharp decline in global trade and further depressed the economy.

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u/Fluffy_WAR_Bunny Jan 28 '25

Harding started the tariff war, 1922, I think. It led to lots of problems through the roaring 20s, then Hoover did another tariff act that was the nail in the coffin.