Smoot Hawley Tariff

About Smoot Hawley Tariff

The Smoot Hawley Tariff Act of 1930 raised US tariffs to their highest levels in history. The average tariff rate on dutiable imports reached approximately 60 percent. The tariff was intended to protect American farmers and manufacturers during the Great Depression. Instead, it triggered retaliatory tariffs from US trading partners. European countries raised their tariffs against American goods. World trade collapsed by approximately 66 percent between 1929 and 1934. Economists generally agree that Smoot Hawley worsened and prolonged the Great Depression. More than 1,000 economists signed a petition opposing the tariff. The Reciprocal Trade Agreements Act of 1934 began the long process of reducing US tariffs through bilateral agreements. Smoot and Hawley both lost their seats in the 1932 election.