Congress Reflects on 1930 Trade War Mistake, Affirms Support for Global Trade System

This resolution is basically Congress taking a moment to look back at a really bad historical decision: the Tariff Act of 1930, better known as the Smoot-Hawley Tariff Act. Ninety-five years after its enactment, this bill serves as a history lesson, not a new law, strongly affirming that the current U.S. commitment to open, rules-based global trade is the right path forward.

The $50 Billion History Lesson

The Tariff Act of 1930 was an attempt to protect American businesses by dramatically raising tariffs—taxes on imported goods. The resolution points out that this move backfired spectacularly. Foreign countries immediately retaliated, starting a trade war that crushed international business. For context, U.S. exports plummeted by 68% between 1929 and 1933, and the U.S. economy shrank by nearly half in the same period. This resolution argues that Smoot-Hawley was a major factor that deepened and prolonged the Great Depression. It’s a formal reminder that protectionism, while sounding good on paper, can lead to devastating economic isolation.

Why Open Trade Matters to Your Wallet

So, why commemorate a century-old mistake? Because the resolution uses that history to champion the modern trade system. It states that today, the U.S. benefits hugely from having an open, rules-based global trading system. What does that mean for you? The resolution argues that this system helps keep manufacturing costs down, which translates to lower prices for consumers at the store. Think about the cost of that new TV, your phone, or even the materials used to build your house—global trade helps keep those prices competitive. For a small business owner, this means stronger supply chains and cheaper raw materials. For the average consumer, it means more choices and better value.

The Commitment to Keep the Doors Open

Ultimately, this resolution is Congress pledging to keep pushing for economic policies that encourage growth and avoid repeating costly mistakes. It supports the system put in place after 1934, which allowed the President to negotiate lower tariffs and better trade deals. The text highlights that this approach has created an export market worth over $3 trillion, which supports American jobs across farming, manufacturing, and technology. While this resolution doesn't change any law or policy right now, it’s a strong, declarative statement that the current policy—favoring global engagement over economic isolation—is here to stay, citing decades of evidence that it benefits the American worker and consumer.