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 ?
All we have to do is look back in history after World War I, when they passed the Smoot-Hawley Tariff Act that triggered a global meltdown and in part, I think, led to the Depression and ultimately World War II.
Lawmakers, already in a (http://www.nber.org/papers/w2001) protectionist mood , responded to the pain of the Great Depression by passing the infamous (https://www.investopedia.com/terms/s/smoot-hawley-tariff-act.asp) Smoot-Hawley Tariff Act of 1930 , which (http://www.economist.com/node/12798595) raised duties on hundreds of imports.
More serious is the wrong date given for the Smoot-Hawley Tariff Act that crippled the Cuban sugar industry--it is given as May 1929, which is before the Wall Street crash, whereas the Act was actually signed into law in June 1930 after the crash (219).
Critics then and since have accused Hoover of contributing to the Depression by rejecting the advice of more than a thousand economists and signing the pork-laden Smoot-Hawley Tariff Act of 1930, which raised tariffs on numerous imported manufacturing and agricultural items.
They examine the origins of the American Smoot-Hawley Tariff Act of 1930, first-class passenger ship fares between Britain and New York City from the 1820s to the outbreak of World War I, the American savings and loan meltdown of 1986-1995, investor responses to monetary and fiscal reforms adopted in the wake of an Ottoman government default in 1875, and the behavior of inflation expectations in the early 1930s in the US.
In 1930, for example, America's Smoot-Hawley Tariff Act singled out Swiss watches, Japanese silk products and other nationally iconic imports.
Animal spirits, the Smoot-Hawley Tariff Act (SHTA), the breakdown of the gold standard, the presence of a liquidity trap, and expectations are among the causes that have been advanced.
Economic protectionism was Republican Party orthodoxy for almost a century after the Civil War; the Smoot-Hawley tariff act of 1930 carried protectionism to a level unlikely to be reached in any conceivable future.
The Smoot-Hawley Tariff Act of 1930 could be the best-known piece of Congressional legislation.
'The Passage of the Smoot-Hawley Tariff Act: Why Did the President Sign the Bill?, Journal of Policy History 21 (1): 63-86
* The Smoot-Hawley Tariff Act was the last general tariff legislation passed by Congress.
That is certainly what happened after Congress approved the protectionist Smoot-Hawley Tariff Act in 1930 in a misguided effort to create American jobs.