People are nodding their heads after a clip from the movie Ferris Bueller's Day Off in which Ben Stein's teacher character explains the disastrous results of the Smoot-Hawley Tariff Act in 1930 went viral after President Donald Trump's announced tariffs on goods imported from Canada and Mexico.
The scene features a high school economics teacher, played by Ben Stein, lecturing his uninterested students about the Smoot-Hawley Tariff Act—a real-life 1930 bill signed by President Herbert Hoover that raised tariffs on imported goods. The law, often blamed for exacerbating the Great Depression, has drawn comparisons to Trump’s recent trade policies.
The Smoot-Hawley Tariff Act raised import duties in an effort to protect American businesses and farmers but ended up adding significant strain to the already fragile global economy during the Great Depression. By increasing the average tariff by around 20%, the act signaled U.S. isolationism and contributed to an early loss of confidence on Wall Street.
It also triggered retaliatory tariffs from foreign governments, leading to widespread bank failures overseas. Within two years, around two dozen countries imposed similar protectionist measures, worsening the global economic downturn and reducing international trade.
Between 1929 and 1932, U.S. imports from and exports to Europe fell by about two-thirds, and global trade declined at similar rates over the four years the act remained in effect. The legislation severely damaged President Herbert Hoover’s reputation, alienating many progressive Republicans, who went on to endorse Franklin D. Roosevelt in the next election.
With this in mind, Stein's character says:
"In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the… Anyone? Anyone?"
When he gets no reply, he answers his question himself:
“Great Depression."
He continues:
"Passed the... Anyone? Anyone? The tariff bill. The Hawley-Smoot Tariff Act. Which... Anyone? Raised or lowered? Raised tariffs in an effort to collect more revenue for the federal government."
"Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression."
You can see the clip below.
People couldn't help but notice the parallels.
Trump announced Thursday that a wide range of goods from Mexico and Canada will be temporarily exempt from the sweeping 25% tariffs imposed earlier in the week, a move aimed at calming market jitters after warnings that the tariffs would drive up consumer prices.
The exemptions apply to goods compliant with the North American free trade agreement established during Trump’s first term and will remain in place until April 2, when a fresh wave of retaliatory tariffs on imports from multiple countries is set to begin.
Roughly half of Mexican imports and 38% of Canadian imports will qualify for the exemption, including potash, a key component in fertilizers, according to a senior administration official. However, some Canadian energy products will still face a 10% tariff, and other goods—like computers imported from Mexico—will remain subject to the full 25% tariff.
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