The Smoot-Hawley Tariff Act, signed into law in 1930, significantly increased tariffs on over 20,000 imported goods. The goal was to protect American industries from foreign competition during the early stages of the Great Depression. However, the act had unintended and devastating consequences.
Other countries retaliated by raising their own tariffs on American goods. This led to a sharp decline in international trade, further crippling economies worldwide. American farmers and manufacturers, who relied on exports, suffered greatly as foreign markets dried up.
Economists generally agree that the Smoot-Hawley Tariff Act exacerbated the Great Depression. By disrupting global trade flows, it deepened the economic downturn and prolonged the suffering of millions of people. The act serves as a cautionary tale about the dangers of protectionism and the importance of international cooperation in economic policy. The legacy of Smoot-Hawley continues to be studied by economists and policymakers today as they navigate complex global trade relations.
Smoot-Hawley Tariff Act: Impact on the Great Depression
The Smoot-Hawley Tariff Act of 1930 raised import duties on thousands of goods. Many economists believe this protectionist measure worsened the Great Depression. The tariffs restricted international trade, leading to decreased exports and economic hardship for many countries. Understanding the impact of this act provides valuable lessons about global trade and economic policy.
Source: Read the original article at ABC