Hitler's Terrible Tariffs

https://www.theatlantic.com/ideas/archive/2025/04/nazi-germany-tariffs-trade/682521/

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https://archive.li/WVKNS

From almost the moment Adolf Hitler took office as chancellor of Germany, tariffs were at the top of his government’s economic agenda. The agricultural sector’s demands for higher tariffs “must be met,” Hitler’s economic minister, Alfred Hugenberg, declared on Wednesday, February 1, 1933, just over 48 hours into Hitler’s chancellorship, “while at the same time preventing harm to industry.” Foreign Minister Konstantin von Neurath was concerned about lumber imports from Austria and a 200-million-reichsmark trade deal with Russia. With several trade agreements about to expire, Hitler’s finance minister, Count Johann Ludwig Graf Schwerin von Krosigk, insisted that “immediate decisions” needed to be made. Hitler told his cabinet he had only one priority—to avoid “unacceptable unrest” in advance of the March 5 Reichstag elections, which he saw as key to his hold on power.

Hitler had what one might call a diffident, occasionally felonious disregard for financial matters. He owed 400,000 reichsmarks in back taxes. His understanding of economics was primitive. “You have inflation only if you want it,” Hitler once said. “Inflation is a lack of discipline. I will see to it that prices remain stable. I have my S.A. for that.” (The S.A., or Brownshirts, were the original paramilitary organization associated with the Nazi Party.) Hitler held Jews responsible for most of Germany’s financial woes.

Hitler relied on Gottfried Feder, the National Socialist Party’s long-serving chief economist, to develop the specifics of an economic program. Feder had helped concoct the strange brew of socialism and fanatical nationalism in the original 25-point program of this putative “workers’ party.” In May 1932, Feder outlined what would become the first Nazi economic plan, in a 32-page position paper designed for ready implementation were Hitler to suddenly find himself in power. High on Feder’s agenda for a Hitler economy were tariffs.

“National Socialism demands that the needs of German workers no longer be supplied by Soviet slaves, Chinese coolies, and Negroes,” Feder wrote. Germany needed German workers and farmers producing German goods for German consumers. Feder saw “import restrictions” as key to returning the German economy to the Germans. “National Socialism opposes the liberal world economy, as well as the Marxist world economy,” Feder wrote. Our fellow Germans must “be protected from foreign competition.”

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