Smoot-Hawley Tariff Act

The Smoot-Hawley Tariff Act was a United States law that was enacted on June 17, 1930. The act raised tariffs on over 20,000 imported goods by an average of 21%, with some tariffs as high as 50%. The act was intended to protect American businesses and workers from foreign competition, but it had the opposite effect. The tariffs caused prices for imported goods to rise, which led to higher prices for American goods. This made it more difficult for American businesses to compete in the global market, and it led to a decline in exports. The Smoot-Hawley Tariff Act is widely blamed for contributing to the Great Depression.

The act was proposed by Senator Reed Smoot of Utah and Representative Willis Hawley of Oregon. It was passed by Congress with bipartisan support, but it was opposed by President Herbert Hoover. Hoover believed that the tariffs would harm the economy, but he was unable to veto the bill.

The Smoot-Hawley Tariff Act was one of the most protectionist pieces of legislation in American history. It raised tariffs on a wide range of goods, including agricultural products, manufactured goods, and raw materials. The tariffs were intended to protect American businesses from foreign competition, but they had the opposite effect. The tariffs made it more expensive for American businesses to import goods, which led to higher prices for American goods. This made it more difficult for American businesses to compete in the global market, and it led to a decline in exports.

The Smoot-Hawley Tariff Act is widely blamed for contributing to the Great Depression. The tariffs caused prices for imported goods to rise, which led to higher prices for American goods. This made it more difficult for American businesses to compete in the global market, and it led to a decline in exports. The decline in exports led to a decline in production, which led to a decline in employment. The Smoot-Hawley Tariff Act is just one of many factors that contributed to the Great Depression, but it is one of the most significant.

The Smoot-Hawley Tariff Act was repealed in 1934. The repeal of the act did not lead to an immediate improvement in the economy, but it is believed to have helped to slow the decline. The Smoot-Hawley Tariff Act is a reminder of the dangers of protectionism. Protectionism can lead to higher prices, lower output, and fewer jobs.