Herbert Hoover asked: "What does it an?"
Donnie replied: "It ans that by then, all countries engaged in international trade with the United States will take retaliatory actions, raising our tariffs as well.
Currently, with the nationwide production surplus, countless factories are closing down, and billions of products are left unsold in warehouses.
Under such circumstances, a multitude of companies engaged in foreign trade will collapse, leading to millions, tens of millions of unemployed taking to the streets!"
Donnie was not being alarmist with these words. After the bill was passed, so countries imdiately began retaliatory actions.
The first to react was the United States’ largest trading partner, Canada.
Canada imdiately announced a tripling of tariffs on 16 types of products imported from the United States, representing 30% of the U.S. exports to Canada in terms of total amount.
After protests, France, the United Kingdom, and Germany also began announcing retaliatory asures, increasing tariffs on so Arican imports, while developing new trade channels -- notably, France almost completely shut out Arican imports.
Following the lead of these countries, others also swiftly took action.
Italy, due to the United States increasing tariffs on Italian straw hats, felt hats, olive oil, and other products, announced it would double the tariffs on Arican car imports, causing Arican car exports to Italy to drop sharply by 90%.
Switzerland, due to the U.S. raising tariffs on Swiss watches, shoes, and embroidery, increased tariffs on so U.S. import products.
Spain, reacting to the U.S. raising tariffs on grapes, oranges, corn, and onions, took counterasures by raising the import tax on Arican cars to a level ensuring not a single one could be sold in Spain.
Following them were a series of countries including Cuba, Australia, New Zealand, and xico.
Over 40 countries announced counterasures against the United States imdiately, sparking a worldwide trade war.
Donnie’s words made Herbert Hoover furrow his brow; he wanted to sign this bill to recover his standing among the public.
But according to Donnie, doing so would not only fail to recover his lost reputation but would even bring him more disgrace!
"Mr. Block, I think you are entirely alarmist!"
Reedsmoot was now certain they couldn’t sway Donnie to their camp.
Combined with Donnie’s previous disrespect, Reedsmoot abandoned any last hopes for him.
"Now, Europe, Arica, all countries internally are chaotic; they need the great federation to provide protection and products.
By opposing this bill, I think you aren’t considering Mr. President’s interests, but your business interests, aren’t you?
Everyone knows your United States Logistics is the largest international logistics company between the United States and Europe.
If we pass such a bill, your United States Logistics business will certainly suffer losses, right?
Additionally, Venus Bank is the largest shareholder in General Motors, the administrator of the third-largest Arican car company, Cadillac.
And General Electric..."
Reedsmoot attempted to list all manufacturing companies under Venus Bank as if reciting cherished keepsakes.
Pa!
Donnie ca forward and interrupted Reedsmoot with a slap.
"Is it necessary for you to ntion Venus Bank’s affairs here?"
Donnie’s slap stunned everyone in the Oval Office.
Unexpectedly, Donnie dared to be so bold.
Reedsmoot covered his cheek in disbelief, then anger.
"Donnie Block, I will sue you; I will make sure you are ruined!"
Even though Reedsmoot was trembling with anger, he only dared to bark where he stood.
Donnie looked at him coldly and said: "Do you want to call the Chief Justice right now to bring him over here?"
Seeing the situation unfolding, Herbert Hoover hurriedly tried to diate.
"Block, Reed was just montarily angry, don’t take it to heart!"
Herbert Hoover then looked at the furious Reedsmoot and said: "Reed, aren’t you going to apologize to Mr. Block?"
Reedsmoot trembled all over, unable to comprehend, as he was hit and acted for Herbert Hoover’s benefit.
Why did Herbert Hoover still want him to apologize to Donnie?
But he had no choice but to apologize!
"Respected Mr. Block, I was impulsive just now, I apologize to you!"
Donnie coldly snorted, ignoring Reedsmoot and continued to talk to Herbert Hoover.
"Mr. President, whatever reasons we have, other countries are not passive; they will certainly retaliate against us.
At that point, it will be an irreversible situation!"
Herbert Hoover pondered for a mont and voiced his true thoughts to Donnie.
"Block, you understand the current dostic situation; if I don’t make so changes, in three years, I’ll have to leave here!"
Herbert Hoover’s aning was already clear, Donnie, the things you’re ntioning could happen, but it’s also possible they won’t.
If I don’t make changes now, what I’m worried about is definitely going to happen.
Herbert Hoover still wanted to stay in the position of President of the United States for a few more years!
Donnie pondered: "Mr. President, do you think the U.S. stock market has already stabilized now?
I can tell you quite clearly, if you indeed pass such a bill, the stock market decline will continue!"
The "Smoot-Hawley Tariff Act" was passed in June 1930. At that ti, the U.S. Dow Jones Industrial Average fell from 250 points to 230 points, a drop of 8%, then continued plunging to a historical low of 41 points on July 8, 1932—before that, the U.S. stock market had been recovering after nurous "Black Fridays".
From the perspective of import and export volu, from 1929 to 1932, the total value of the United States’ imports from Europe fell by 70%.
The total value of U.S. exports to Europe from 1929 to 1932 fell by 67%.
One of the direct impacts of the full-scale retreat in import and export volu was a significant rise in the U.S. unemploynt rate.
Venus Bank had already reaped its intended benefits from the stock crash.
Next, Donnie hoped for the companies acquired by Venus Bank to recover in the slowly rejuvenating market.
But now Herbert Hoover’s actions were hindering such recovery!
If the current situation in the United States led people to believe the Great Depression was arriving.
Then passing this bill would completely establish the era of the Great Depression in the U.S.!
In 1930, the year the "Smoot-Hawley Tariff Act" was passed, the U.S. unemploynt rate was 7.8%.
By 1931, it rose to 16.3%, reached 24.9% in 1932, and an astonishing 25.1% in 1933.
The United States officially entered the "Great Depression", but the affected weren’t only Aricans.
Due to countries worldwide being forced to raise trade barriers, trade activity between countries rapidly reduced.
Later generations had statistics on this situation; by 1933, world trade levels were only a third of those in 1929; from 1929 to 1934, global trade scale shrank by 66%.
A worldwide "Economic Great Depression" thus began.
Herbert Hoover could not have foreseen all of this, but...
Even if he could, what could he do about it?
"Block, do you have any alternative solutions for the current situation?"
Herbert Hoover asked Donnie.
Donnie: "..."
This ti, Donnie understood very clearly why so many people in another tiline tried to dissuade Herbert Hoover, yet he stubbornly signed the bill.
That is, nothing could deter his attempt to restore his reputation.
Even if it was wrong, at least it would be his last resort!
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