Trump's 'Great Depression' Threat: Here's What Happened In 1929

Last Updated:August 11, 2025, 17:53 IST

According to WTO and IMF, the US average tariff rate rose from 2.4% at Trump's start to 20.1%, peaking at 24.8% after May’s China tariff hike, the highest since 1904

Donald Trump argues that the tariffs have benefited the American economy, with billions of dollars flowing into the US treasury. (AP/File)

US President Donald Trump has once again shocked the world, this time issuing a direct threat to the US judiciary and the global trade system. Trump has stated that if the court rules against his tariff policy, America will fall into another ‘Great Depression’ akin to the one in 1929.

Trump asserts that his tariffs have strengthened the US economy, and a court rejection would disrupt the country’s economic balance. He has labelled it the beginning of a ‘Great Depression like 1929’.

To understand why Trump’s statement is considered dangerous, it’s crucial to examine the impact of tariffs on the US market and recall the Great Depression of 1929.

Trump Warns Of Crisis If Court Removes Tariff

Trump wrote on the social media platform ‘Truth Social’ that if a ‘radical left court’ decides to remove the tariffs, America will never recover economically. He stated, “If this happens, it will be a Great Depression like 1929. Destruction is certain. We will never be able to bring back our wealth, power, and respect."

He sarcastically added that the court should have made a decision against the tariffs at the beginning of the case. Now, with the country at the peak of economic achievement, such a decision would be dangerous.

Trump’s Take: Tariffs Are Beneficial

Trump argues that the tariffs have benefited the American economy, with billions of dollars flowing into the US treasury and a positive effect on the stock market. He called it the ‘era of greatest wealth and power’ for America. However, his policies have also been criticised. Many economists argue that tariffs have increased the burden on consumers and fuelled inflation.

Highest Tariff Rate Since 1910

According to the WTO and IMF, the average tariff rate in the US has reached 20.1%, the highest since the 1910s. At the beginning of Trump’s tenure, this rate was only 2.4%. After increasing tariffs on China in May this year, the rate surged to 24.8%, a record since 1904. Currently, the tariff war between America and China is on a temporary pause, but this truce is ending next week.

What Was The 1929 Great Depression?

The Great Depression of 1929 was marked by a massive stock market crash in America that devastated the global economy for years. Unemployment soared, banks and companies went bankrupt in large numbers, and there was widespread economic stagnation. Trump’s warning alludes to this history, suggesting that if the court overturns the tariffs, America could face a similar economic catastrophe.

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