Smoot-Hawley Tariff: An Epic Trade Disaster
2025-02-02
The Smoot-Hawley Tariff Act of 1930, a protectionist trade policy that dramatically increased tariffs on over 20,000 imported goods, is widely considered a major contributor to the Great Depression. Intended to shield American industries and workers, it instead triggered a global trade war, resulting in a sharp decline in US exports and imports, shrinking global trade and soaring unemployment. Despite warnings from economists, President Hoover signed the bill, a decision that exacerbated the economic crisis. The Smoot-Hawley Tariff remains a cautionary tale of the perils of protectionism.