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.
References in periodicals archive ?
A traditional trade war with each country raising across-the-board tariffs is a historical relic--there will be no new Smoot-Hawley Act.
Protectionism spread like wildfire around the world after the United States passed the infamous Smoot-Hawley Act of 1930.
protectionism--actually the straw that broke the back of protectionism--came in 1930 when, in the teeth of the Great Depression, Congress passed the Smoot-Hawley Act, a veritable orgy of unpatterned and unprincipled tariff increases that were the highest in the history of the United States.
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.
4) The Smoot-Hawley Act of 1930, perhaps the most infamous tariff in U.
In an effort to shore up domestic business, Congress passed, and President Hoover signed into law, the Smoot-Hawley Act, restricting imports.