Happy Groundhog Day

The Never-Ending Tale of Tariffs February 2, 2025

If history has taught us anything, it’s that tariffs are like Groundhog Day—no matter how many times we try them, we wake up to the same economic debates. And, in a move as symbolic as it is nostalgic, one of the first executive orders of 2025 was to rename Mount Denali in Alaska back to Mount McKinley—again. The mountain, which had been officially renamed Denali in 2015 to honor its Indigenous heritage, was once again given the name of President William McKinley, the ultimate tariff guy—the protectionist-in-chief of the late 19th century. Because what better way to commemorate his legacy than with a giant, frozen mountain?

The 1870s: Tariffs, Reconstruction, and the Great American Paywall

After the Civil War, America faced a tough question: How do we rebuild and fund a growing nation without PayPal? Answer: tariffs! During Reconstruction, tariffs became the go-to economic strategy, acting as a giant “Members Only” jacket for American industries. If you wanted access to our markets, you had to pay up. These high tariffs helped protect budding American industries but also made imports as expensive as a gourmet avocado toast.

World War I: When Tariffs Met Income Tax

Then came World War I, and suddenly, tariffs weren’t enough to fund Uncle Sam’s ambitious war spending. Enter the income tax in 1913, because what better way to ensure funding than taking money directly from the source? Tariffs, once the star of government revenue, were demoted to a supporting role, while income tax became the lead actor no one wanted but everyone had to deal with.

1930: Ferris Bueller and the Tariff Day Off

If you’ve ever seen Ferris Bueller’s Day Off, you know that skipping school has consequences. The same applies to skipping basic economics. In 1930, the Smoot-Hawley Tariff was introduced to protect American jobs during the Great Depression. Instead of relief, it led to retaliatory tariffs worldwide, strangling global trade like an overenthusiastic hall monitor. Countries shut their doors, exports plummeted, and the world economy curled up in the fetal position. If only someone had taken a “tariff day off” and rethought that decision.

1992: Ross Perot, NAFTA, and the Giant Sucking Sound

Fast forward to the early ‘90s, when Ross Perot warned of a “giant sucking sound” if NAFTA passed. He argued that without tariffs, American jobs would disappear to Mexico faster than free samples at Costco. While some jobs did move south, global trade and economic integration also expanded. Tariffs, once again, found themselves caught between economic theory and political theater.

Tariff Wars:

From the 18th century to today, the world has found itself in more tariff conflicts than one can count—whether it was fighting over Canadian lumber, European steel, or a new batch of sanctions. One minute, tariffs protect industries; the next, they spark trade wars. It’s a never-ending cycle, much like a certain Bill Murray movie.

The Bottom Line: Will We Ever Learn?

If history is any indicator, tariffs will always make a comeback—like bell-bottom jeans, but with bigger economic consequences. Whether they protect jobs or stifle trade depends on who you ask. But one thing is certain: whenever tariffs return, they bring heated debates, economic ripple effects, and a whole lot of déjà vu.

So, as we look to the future, let’s remember one thing: whether it’s Groundhog Day or economic policy, the past has a funny way of repeating itself.