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In 1930, just when trade was needed more than ever to keep economies going, President Herbert Hoover signed the Smoot-Hawley tariff act, ignoring formal protests by more than 30 countries, sharply raising tariff barriers and triggering a worldwide spate of retaliatory protectionist measures.
If countries start raising tariff barriers and penalizing transnational corporations, the global supply chain model may grow untenable.
The financial crisis saw food-importing countries hastily raising tariff barriers and increasing their national food production.
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Russia and India are already raising tariffs on cars and steel.
Well, raising tariffs to reduce the trade deficit could backfire.
There have been several instances of countries raising tariffs, within the limits of their WTO commitments.
The EU deters imports by raising tariffs, and it clears its sugar mountains by subsidising exports.
Mr. Trump's rationale for raising tariffs against Mexico or China probably meet this standard.
Furthermore, unilaterally raising tariffs at the rates proposed by the candidates would clearly violate international law.
It urged that policymakers settle their disagreements without raising tariffs and other barriers to international trade.
Mr Correa responded by raising tariffs on hundreds of goods, breaking trade agreements with his Andean neighbours.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com