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Smoot-Hawley Act

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Smoot-Hawley Act
Legislation in the United States, passed in 1930, that raised tariffs on thousands of imports. The idea behind the Act was to protect American jobs, especially those of farmers, from cheap imports. However, the Act is considered to have been a failure because it led to retaliatory measures in foreign countries, which reduced U.S. exports. Some economists consider the Act to have been a contributing cause to the depth of the Great Depression. See also: NAFTA, Trade war.


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Protectionism spread like wildfire around the world after the United States passed the infamous Smoot-Hawley Act of 1930.
TRANSFORMATION: THE RECIPROCAL TRADE AGREEMENTS ACT OF 1934 The transformation from the protectionism of the Smoot-Hawley Act of 1930 to the expansionist philosophy of the Reciprocal Trade Agreements Act of 1934 (RTAA) turned the United States from an inward-looking, isolationist, and protectionist country into one focused both on international economic affairs and on exports.
I've joked with colleagues that if I put in the Smoot-Hawley Act today, we could find a number of representatives who would co-sponsor it before they realized it was the same bill that helped set off a worldwide depression.
 
 
 
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