Smoot-Hawley Tariff Act of 1930 ↔ U.S.

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cross_type 3.70 — strongly supporting 12 facts

The Smoot-Hawley Tariff Act of 1930 was a legislative action enacted by the U.S. to increase import duties [1], [2], which significantly impacted the U.S. economy [3], [4] and its international trade relations [5], [6].

Facts (12)

Sources

History of tariffs in the United States - Wikipedia en.wikipedia.org Wikipedia 8 facts

measurementThe Smoot-Hawley Tariff Act raised the average level of tariffs on dutiable imports to the United States by 15 to 18 percent.

claimDouglas Irwin emphasizes that a major consequence of the Smoot-Hawley Tariff Act was the deterioration of United States trade relations with key partners, as the act was perceived as a unilateral and hostile move that undermined international cooperation during a time when the League of Nations was seeking a global tariff truce.

accountPrior to the Smoot-Hawley Tariff Act of 1930, United States tariffs were set by Congress after months of testimony and negotiations.

measurementPartial and general equilibrium evaluations indicate that the Smoot-Hawley Tariff Act reduced United States imports by between 4% and 8%, assuming all other variables remained constant.

measurementA counterfactual simulation suggests that almost a quarter of the observed 40% drop in United States imports during the Great Depression can be attributed to the increase in the effective tariff, which includes the Smoot-Hawley Tariff Act and deflation.

claimThe impact of the Smoot-Hawley Tariff Act was mitigated by the small size of the trade sector in 1930, as only one-third of total United States imports were subject to duties, and those dutiable imports represented only 1.4 percent of the United States GDP.

claimFrom a Keynesian perspective, the Smoot-Hawley Tariff Act was counterproductive because the decline in United States exports exceeded the reduction in imports.

claimThe most significant long-term impact of the Smoot-Hawley Tariff Act was that the resentment it generated encouraged other countries to form discriminatory trading blocs, which diverted trade away from the United States and hindered global economic recovery.

The Tariff Tug-of-War: A Look at Protectionism and Free Trade Over ... wita.org Washington International Trade Association 1 fact

accountThe Smoot-Hawley Tariff Act of 1930 raised import duties in the United States to protect American jobs, which triggered a global trade war as other nations retaliated with their own tariffs.

Why the US and the WTO should part ways - CEPR cepr.org VoxEU 1 fact

accountThe Smoot-Hawley Tariff Act of 1929 was an act of unilateralism by the US that did not violate existing multilateral commitments, as the US had not joined the League of Nations.

U.S. Trade and Tariffs: A Long-Term Perspective - UW-Stevens Point | blog.uwsp.edu University of Wisconsin-Stevens Point 1 fact

accountThe Smoot-Hawley Tariff Act of 1930 increased tariffs on imports of farm products and manufactured goods in an unsuccessful attempt to pull the United States out of the Great Depression.

The Evolution of Tariffs: The United States' Historical Implementation ... thefinplangroup.com The Financial Planning Group 1 fact

measurementBetween 1929 and 1934, international trade declined by 66%, and over 25 countries retaliated against the United States due to the Smoot-Hawley Tariff Act.