How Trade Tariffs, Interest Rates, and the Dollar Shape Our Economy: Past Lessons and Everyday Impacts
How Trade Tariffs, Interest Rates, and the Dollar Shape Our Economy: Past Lessons and Everyday Impacts How Trade Tariffs, Interest Rates, and the Dollar Shape Our Economy: Past Lessons and Everyday Impacts Ever wondered why your grocery bill creeps up or why your car loan feels pricier? In 2025, trade tariffs, interest rates, and the U.S. dollar’s strength are pulling the strings behind these changes. As an economics enthusiast who’s tracked markets since the 2008 crash, I’ve seen how these forces ripple from global trade desks to your wallet. Let’s unpack their impact—past and present—with numbers and lessons that hit home. A History of Tariffs: Echoes of the 1930s Tariffs—taxes on imports—aren’t new. In 1930, the Smoot-Hawley Tariff Act raised U.S. tariffs to 20% on average, aiming to shield farmers and factories. Instead, it backfired: global trade fell 66% by 1934, deepening the Great Depression. Fast-forward to 2018, when tariffs on Ch...