The Tariff Act of 1930 (codified at 19 U.S.C. ch. 4), otherwise known as the Smoot–Hawley Tariff or Hawley–Smoot Tariff, was an act sponsored by Senator Reed Smoot and Representative Willis C. Hawley and signed into law on June 17, 1930. The act raised U.S. tariffs on over 20,000 imported goods to record levels.
The dutiable tariff level (this does not include duty-free imports) under the act was the second highest in the U.S. in 100 years, exceeded by a small margin by the Tariff of 1828. The great majority of economists then and ever since view the Act, and the ensuing retaliatory tariffs by America’s trading partners, as responsible for reducing American exports and imports by more than half. According to Ben Bernanke, “Economists still agree that Smoot-Hawley and the ensuing tariff wars were highly counterproductive and contributed to the depth and length of the global Depression.”
Most historians view it as an aggravating factor in making a bad situation worse. Its increased tariff rates on foreign goods led many other nations to jack up their rates on our goods, undermining our chance to sell them overseas and thus reducing demand for them, causing thousands of American workers to be laid off, increasing unemployment. We will see if history repeats itself with Trump’s policies.
Phred Premium Member almost 8 years ago
A rebel without a cause?
JudyAz almost 8 years ago
Actually, the name Smoot is quite famous, at least in Boston/Cambridge, on the Harvard Bridge.
Bargrove almost 8 years ago
Google this one up and you will also find Trump in volved.
gammaguy almost 8 years ago
I refuse to haul any more smoot.
Michael Beeson Premium Member almost 8 years ago
Economists are still arguing about its relation to the Depression. Does Mr. Trump know the history of Smoot-Hawley?
Teto85 Premium Member almost 8 years ago
The Tariff Act of 1930 (codified at 19 U.S.C. ch. 4), otherwise known as the Smoot–Hawley Tariff or Hawley–Smoot Tariff, was an act sponsored by Senator Reed Smoot and Representative Willis C. Hawley and signed into law on June 17, 1930. The act raised U.S. tariffs on over 20,000 imported goods to record levels.
The dutiable tariff level (this does not include duty-free imports) under the act was the second highest in the U.S. in 100 years, exceeded by a small margin by the Tariff of 1828. The great majority of economists then and ever since view the Act, and the ensuing retaliatory tariffs by America’s trading partners, as responsible for reducing American exports and imports by more than half. According to Ben Bernanke, “Economists still agree that Smoot-Hawley and the ensuing tariff wars were highly counterproductive and contributed to the depth and length of the global Depression.”
zeimetr almost 8 years ago
Most historians view it as an aggravating factor in making a bad situation worse. Its increased tariff rates on foreign goods led many other nations to jack up their rates on our goods, undermining our chance to sell them overseas and thus reducing demand for them, causing thousands of American workers to be laid off, increasing unemployment. We will see if history repeats itself with Trump’s policies.
Dirty Dragon almost 8 years ago
Wasn’t Smoot Hawley the engineer on the Hooterville Cannonball?
neverenoughgold almost 8 years ago
I don’t have a clue…