---
title: "Smoot-Hawley Tariff Act | World History 1400-Present"
description: "Smoot-Hawley Tariff Act raised U.S. import taxes in 1930, triggering retaliation abroad and worsening the Great Depression in World History 1400 to Present."
canonical: "https://fiveable.me/world-history-since-1400/key-terms/smoot-hawley-tariff-act"
type: "key-term"
subject: "World History – 1400 to Present"
unit: "Unit 12"
---

# Smoot-Hawley Tariff Act | World History 1400-Present

## Definition

The Smoot-Hawley Tariff Act was a 1930 U.S. law that sharply raised import tariffs. In World History 1400 to Present, it is a major example of protectionism during the Great Depression.

## What It Is

The Smoot-Hawley Tariff Act was a U.S. law passed in 1930 that raised import taxes on thousands of goods. In World History 1400 to Present, it shows how governments tried to shield their own economies during the Great Depression by making foreign products more expensive.

The basic idea was protectionism. Farmers and manufacturers in the United States were under pressure from falling prices, shrinking demand, and foreign competition, so lawmakers tried to protect domestic producers by increasing tariffs. The problem was that tariffs do not just affect foreign sellers. They also raise prices for importers, businesses that depend on raw materials, and consumers who buy those goods.

Smoot-Hawley became famous because it did not stay a domestic policy for long. Other countries responded with their own tariffs on American goods, which made world trade contract even more. When trade falls during an economic crisis, countries that rely on exports feel the pain fast, and the slowdown spreads across borders. That is why this act is usually discussed as part of the broader collapse of the global economy in the 1930s.

The law is also tied to political debate. It had support from people who thought the federal government should defend American jobs and farms, but economists and business leaders warned that higher tariffs could backfire. President Herbert Hoover signed it anyway, which makes it a good example of how leaders sometimes choose short-term political pressure over longer-term economic consequences.

In a world history class, you usually see Smoot-Hawley alongside bank failures, falling industrial output, and rising unemployment. It helps explain why the Great Depression was not just a stock market crash in the United States. It was a global crisis, and trade policy helped turn a national emergency into a wider international downturn.

## Why It Matters

Smoot-Hawley matters because it shows how one country’s economic policy can ripple through the entire world. When you study the Great Depression, this act is one of the clearest examples of how trade decisions can deepen a crisis instead of fixing it.

It also gives you a concrete way to think about protectionism. The goal was to defend domestic producers, but the result was retaliatory tariffs and less trade overall. That tension, between protecting local industries and keeping international markets open, comes up again and again in modern history.

The act is useful for seeing why the 1930s pushed many governments toward isolationism and economic nationalism. It helps connect economic collapse to political change, since trade breakdown, unemployment, and fear made extremist movements and stronger state intervention more appealing in many places.

If you are writing about causes of the Great Depression, Smoot-Hawley gives you a strong piece of evidence for the global spread of the downturn. If you are comparing responses to the depression across countries, it shows one especially bad response to economic stress: making trade harder right when economies needed more exchange, not less.

## Connections

### Tariffs

Tariffs are taxes on imported goods, and Smoot-Hawley is one of the most famous tariff laws in modern history. This connection matters because the act was not just a random policy choice, it was a specific use of tariffs to protect domestic producers. In a world history essay, you can explain how tariffs affect prices, trade flows, and international relations.

### Protectionism

Protectionism is the larger economic idea behind Smoot-Hawley. The law tried to shield U.S. farmers and manufacturers from foreign competition, but it also made the global downturn worse. That makes it a strong example of how protectionist policies can have unintended consequences when different economies are already linked through trade.

### Great Depression

Smoot-Hawley belongs in the Great Depression because it helped turn economic distress into a wider international crisis. World history courses often use it to show that the depression was not limited to one country. It became a global problem through falling trade, rising unemployment, and policy responses that spread the damage.

### [Credit crunch](/world-history-since-1400/key-terms/credit-crunch)

A credit crunch and Smoot-Hawley are connected because both show how economic panic can make recovery harder. When credit tightens, businesses have trouble borrowing and expanding. When tariffs rise, trade becomes more expensive and less predictable. Together, they help explain why the early 1930s saw so many layers of economic contraction at once.

## On the AP Exam

A quiz question might ask you to identify Smoot-Hawley from a description of rising tariffs, trade retaliation, or worsening depression-era conditions. On an essay prompt, you can use it as evidence that policy choices during the Great Depression affected more than one country.

If you see a document or political cartoon about farmers, factories, or international trade collapsing, look for the tariff angle. The best move is to connect the law to cause and effect: higher tariffs led to retaliation, which reduced trade and deepened the crisis. That kind of chain is exactly what world history teachers like to see.

You may also use it in a comparison question about economic responses. Smoot-Hawley is a good contrast with policies that try to expand trade, stabilize markets, or increase government intervention in other ways.

## Smoot-Hawley Tariff Act vs Tariffs

Tariffs are the general category of import taxes, while the Smoot-Hawley Tariff Act is one specific law that raised tariffs on a huge scale in 1930. If a question asks for the broad economic tool, answer tariffs. If it asks for the historical case tied to the Great Depression, answer Smoot-Hawley.

## Key Takeaways

- The Smoot-Hawley Tariff Act was a 1930 U.S. law that raised import duties on thousands of goods.
- It was meant to protect American farmers and manufacturers during the early Great Depression, but it backfired by shrinking trade.
- Other countries retaliated with their own tariffs, which made the global economic slump worse.
- World history uses this act as a clear example of protectionism and economic nationalism during crisis.
- If you remember one thing, remember the cause and effect: higher tariffs did not fix the Depression, they helped deepen it.

## FAQs

### What is the Smoot-Hawley Tariff Act in World History 1400 to Present?

It was a 1930 U.S. law that sharply increased tariffs on imported goods. In world history, it is remembered as a protectionist response to the Great Depression that ended up making international trade worse.

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

The law raised prices for imports, and other countries answered with tariffs on American goods. That retaliation reduced world trade, hurt exporters, and made the economic collapse deeper and broader.

### Is the Smoot-Hawley Tariff Act the same thing as tariffs?

No. Tariffs are the general taxes placed on imports, while Smoot-Hawley is one specific tariff law. It is the famous historical example you use when talking about protectionism during the Great Depression.

### How do I use Smoot-Hawley in a world history essay?

Use it as evidence that government policy can spread an economic crisis across borders. It works well in paragraphs about the Great Depression, global trade collapse, or the limits of protectionism.

## Related Study Guides

- [12.3 The Great Depression](/world-history-since-1400/unit-12/3-great-depression/study-guide/3R8ZGogiwhhpnspX)

## About This Document

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