---
title: "Smoot-Hawley Tariff Act | European History"
description: "Smoot-Hawley Tariff Act: the 1930 U.S. tariff hike that worsened the Great Depression by shrinking world trade and triggering retaliation."
canonical: "https://fiveable.me/europe-1890-1945/key-terms/smoot-hawley-tariff-act"
type: "key-term"
subject: "European History – 1890 to 1945"
unit: "Unit 9"
---

# Smoot-Hawley Tariff Act | European History

## Definition

The Smoot-Hawley Tariff Act was a 1930 U.S. law that raised tariffs on hundreds of imports to protect domestic producers. In European History, it matters because it helped shrink world trade during the Great Depression.

## What It Is

The Smoot-Hawley Tariff Act was a 1930 U.S. law that sharply raised tariffs on imported goods, especially to shield American farmers and manufacturers during the early Great Depression. In practice, it made foreign products more expensive in the U.S. market, so the government hoped buyers would turn to domestic goods instead.

In European History from 1890 to 1945, you meet the act as part of the economic crisis that hit after 1929. The stock market crash was the most visible shock, but the depression got worse because economies were tied together through trade, credit, and investment. When the United States raised tariffs, it did not just change prices at home. It changed how other countries traded with the U.S. and with each other.

That is why the act became a symbol of protectionism, which means trying to protect your own economy by limiting imports. Countries like France, Britain, Germany, and others responded with their own tariffs or trade restrictions. Once governments started retaliating, international trade slowed even more, and that made the depression deeper and more widespread.

The tariff did not cause the Great Depression by itself, but it made a bad situation worse. European economies already faced problems from war debts, unstable banking systems, agricultural overproduction, and dependence on international loans. When trade collapsed, factories sold less, farmers earned less, and unemployment rose across borders.

For this course, the act matters because it shows how one policy decision in the United States could worsen economic conditions in Europe. It also shows how leaders in the interwar period often reacted to crisis by turning inward instead of cooperating internationally. That pattern matters later too, because economic hardship fed political instability and made extremist movements more appealing in several countries.

You may also see the term written as Hawley-Smoot Tariff Act. That is the same law, just a different order of the names.

## Why It Matters

The Smoot-Hawley Tariff Act is one of the clearest examples of how the Great Depression spread across national borders. In European History, it helps you explain why a crash in the United States became a global economic crisis instead of staying a local one.

It also gives you a concrete way to talk about protectionism in the interwar period. Rather than cooperating through trade, countries often tried to defend their own economies, and those choices frequently backfired. That cycle of retaliation is a useful pattern to remember when you study why the 1930s became so unstable.

The act connects directly to European unemployment, falling trade, and political unrest. When economies shrank, governments had fewer options, workers lost jobs, and frustration grew. That economic pain helped create the conditions in which extremist parties and authoritarian leaders could gain support.

If you are writing an essay or short response, this term is a strong piece of evidence for explaining why the Great Depression was international, not just American. It also helps you show the link between economics and politics in the interwar years.

## Connections

### Great Depression

The tariff is one of the policy decisions that deepened the Great Depression after the 1929 crash. It did not begin the depression, but it made recovery harder by cutting trade and lowering demand. In an essay, you can use it as evidence that the depression spread through more than just stock markets and banks.

### Protectionism

Smoot-Hawley is a classic example of protectionism, because it raised barriers to imported goods. In the interwar years, protectionism seemed like a way to defend jobs and prices, but it often triggered retaliation. That makes it a useful term when you discuss why countries turned inward during economic crisis.

### Reciprocal Trade Agreements

These agreements were later efforts to move away from the damage caused by high tariffs like Smoot-Hawley. Instead of trading barriers, governments tried to lower tariffs through negotiation. The connection shows how policymakers eventually recognized that trade wars could make depression conditions worse, not better.

### [gold standard](/europe-1890-1945/key-terms/gold-standard)

The gold standard and Smoot-Hawley both helped transmit the depression internationally, but in different ways. Gold-standard pressures tied currencies and finance together, while tariffs disrupted trade. Together they show why the economic crisis spread so widely across Europe and beyond.

## On the AP Exam

A quiz question might ask you to identify why the Smoot-Hawley Tariff Act worsened the Depression, and you should answer with the cause-and-effect chain: higher U.S. tariffs, foreign retaliation, shrinking world trade, deeper unemployment. In an essay, you can use it as proof that economic nationalism made the interwar crisis worse.

If you get a timeline or short-response prompt, place it in 1930 and connect it to the early Depression, not the crash itself. If the question asks about Europe, explain how falling exports hurt European economies that already depended on trade and American credit. A strong answer usually mentions protectionism and retaliation, not just "high tariffs."

## Smoot-Hawley Tariff Act vs Reciprocal Trade Agreements

Smoot-Hawley raised tariffs and made trade barriers worse, while Reciprocal Trade Agreements moved in the opposite direction by lowering tariffs through negotiation. They are often confused because both deal with trade policy, but one escalates trade conflict and the other tries to reduce it.

## Key Takeaways

- The Smoot-Hawley Tariff Act was a 1930 U.S. law that raised tariffs on imported goods to protect domestic producers.
- In European History, it matters because it helped turn the Great Depression into a global crisis by reducing international trade.
- Other countries responded with retaliatory tariffs, which made trade even weaker and hurt exporters across Europe.
- The act is a clear example of protectionism, the idea that countries can shield their economies by limiting imports.
- You can use the tariff as evidence that interwar economic problems were connected across countries, not isolated within one nation.

## FAQs

### What is Smoot-Hawley Tariff Act in European History?

It was a 1930 U.S. law that sharply increased tariffs on imported goods. In European History, it shows how American trade policy helped worsen the Great Depression by causing retaliation and shrinking world trade.

### Why did the Smoot-Hawley Tariff Act make the Great Depression worse?

Because other countries responded with their own tariffs, so global trade fell. That hurt exporters, reduced income, and made already weak economies even more fragile across Europe and beyond.

### Is Smoot-Hawley the same as protectionism?

Not exactly. Protectionism is the broader policy idea of shielding domestic industries from foreign competition, while Smoot-Hawley is one specific example of that idea. The act is often used to show how protectionism can backfire during an economic crisis.

### Why does this tariff matter in a course on 1890 to 1945?

It connects the interwar economy to political instability. When trade collapsed and unemployment rose, governments and voters became more desperate, which helped create the conditions for authoritarianism and conflict in the 1930s.

## Related Study Guides

- [9.1 Causes and Global Spread of the Depression](/europe-1890-1945/unit-9/global-spread-depression/study-guide/anYgToSs9tjxolOy)

## About This Document

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