並列摘要
Throughout modern history, many countries have gone to war with one another over some conflict, be it economic or militaristic in nature. When such conflicts arise they are not always fought with manpower, but instead with trade sanctions – such as tariffs and subsidies. These conflicts, known as trade wars, are inherently bad for nations. They reduce trade, burden the local population with higher priced goods, and rarely end up achieving the goal leaders had in mind when first signing them into law. This paper will discuss two of these trade wars. First, the U.S. Smoot-Hawley Act, enacted in 1930, and then the current and ongoing U.S.-China Trade War. During both of these events, protectionist policies and nationalism increased, tariff rates heightened, and both occurred during pivotal moments in history – namely the Great Depression and the current COVID-19 crisis. This paper will first outline tariffs and subsidies, and how they effect a nation. Then, both the Smoot-Hawley Act and the U.S. China Trade war will be analyzed, highlighting the similarities amongst the two, in order to draw possible conclusions for current U.S. China Trade War.
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