The Smoot-Hawley Tariff Act refers to a U.S. legislation passed in 1930 that significantly raised import duties on foreign goods. It aimed to protect American industries during the Great Depression, but it ultimately worsened global economic conditions.
The Smoot-Hawley Tariff Act, officially known as the Tariff Act of 1930, emerged during the early stages of the Great Depression. It was crafted by Senator Reed Smoot and Representative Willis C. Hawley in an effort to protect American farmers and manufacturers from foreign competition. Enacted by President Herbert Hoover, the law significantly raised U.S. tariffs on over 20,000 imported goods to record levels.
The Smoot-Hawley Tariff Act is widely considered to have exacerbated the Great Depression by stifling international trade and prompting retaliatory tariffs from other nations. It contributed to a significant decline in global commerce, strained international economic relations, and is often cited as a cautionary example of how protectionist policies can lead to economic isolation and global trade wars. Its passage marked a high point in U.S. protectionism before a gradual shift toward freer trade post-World War II.