What is the Smoot-Hawley Act?
The Smoot-Hawley Tariff Act (officially: Tariff Act of 1930) was a U.S. law that raised tariffs on thousands of imported goods.
• Sponsored by: Senator Reed Smoot and Representative Willis C. Hawley
• Signed into law: June 17, 1930, by President Herbert Hoover
• Goal: To protect American farmers and manufacturers by making foreign goods more expensive (and less competitive) during the Great Depression.
What did it do?
• Increased U.S. tariffs on over 20,000 imported goods to record levels.
• For example, tariffs on some agricultural goods were doubled.
What happened as a result?
• Other countries retaliated by raising their own tariffs.
• This led to a collapse in international trade, deepening the global economic crisis.
• It is widely blamed for worsening the Great Depression worldwide.
Legacy:
The Smoot-Hawley Act is now often cited as a warning against protectionism in times of economic stress. Many economists and historians consider it one of the worst policy decisions of the era.
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