The Smoot-Hawley Tariff Act raised US tariffs on over 20,000 dutiable items to record levels, and, in the opinion of many economists, protracted the Great Depression. U.S. President Herbert Hoover signed the act into law on June 17, 1930.

The act was championed by Senator Reed Smoot, a Republican from Utah, and Congressman Willis C. Hawley, a Republican from Oregon. President Herbert Hoover had asked Congress for a downward revision in rates, but U.S. Congress raised rates instead. While many economists urged a veto, Hoover thought he could finesse the law through the U. S. Tariff Commission , and signed the bill.

Opponents of the measure organized a petition signed by 1,000 economists who expressed concern about anticipated tariff reprisals from other nations.

Although the tariff act was passed after the Stock Market Crash of 1929, many economic historians consider it a factor in deepening the Great Depression. Some economists also view the stock market crash as being a pre-emptive revaluation of stocks based on the news that the tariff act would most likely pass into law. This view is based on the concept that stock markets respond primarily to news about the future.

As nations resorted to protectionism, the general amount of international trade decreased, causing the world economy to slow.

In part as a result of the Hawley-Smoot Tariff and other countries' responses to it, the post-World War II world saw a push towards multilateral trading agreements that would prevent a similar situation from unfolding. This led in part to the Bretton Woods Agreement in 1944 and the General Agreement on Tariffs and Trade (GATT) in the 1950s.

There is still some historical debate as to whether the tariff was harmful or not. A revenue-generating tariff can be beneficial to an economy, if other countries do not respond with tariffs of their own. There has been debate as to whether other countries raised their own tariffs as a result of the Hawley-Smoot Tariff , or if they were simply attempting to accomplish the same goal as the United States. Much of this debate has been centered upon Canada, the United States' largest trading partner, which raised their tariffs substantially in recent years. The cause of the Canadian decision is still disputed, however.

See also

• International trade
• Protectionism

External links

• Smoot-Hawley Tariff page on the United States Department of State website
• Opinion on the role of the Tariff in the Great Depression from the National Center for Policy Analysis