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Smoot-Hawley Tariff Act of 1930
Also known as: Smoot-Hawley Tariff Act of 1930, Smoot-Hawley Tariff Act
Facts (24)
Sources
History of tariffs in the United States - Wikipedia en.wikipedia.org 11 facts
claimThe Smoot-Hawley Tariff Act limited foreign access to United States dollars, which appreciated the currency and made American goods less competitive abroad.
claimDouglas Irwin argues that the Smoot-Hawley Tariff Act was not the primary cause of the Great Depression, but it contributed to the severity of the economic downturn by provoking international retaliation and reducing global trade.
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.
claimDouglas Irwin asserts there is no evidence that the Smoot-Hawley Tariff Act achieved its stated goals of net job creation or economic recovery.
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 Evolution of Tariffs: The United States' Historical Implementation ... thefinplangroup.com Oct 22, 2025 4 facts
claimThe Smoot-Hawley Tariff Act, enacted in June 1930, added a 20% import duty on foreign agricultural products and manufactured goods to protect American industries.
accountFollowing the signing of the Smoot-Hawley Tariff Act into law on June 15, 1930, the Dow Jones Industrial Average declined by 5.8% the following day, marking the largest single-day decline that year.
measurementThe Smoot-Hawley Tariff Act raised import duties on 800-900 goods, covering 25% of total U.S. imports, with the average tariff rate reaching 45-50%.
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.
The Tariff Tug-of-War: A Look at Protectionism and Free Trade Over ... wita.org Apr 29, 2025 2 facts
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.
claimThe Smoot-Hawley Tariff Act of 1930 resulted in a dramatic decline in international trade and worsened the economic crisis of the Great Depression.
[PDF] THE EVOLUTION OF TARIFFS | Hightower Advisors hightoweradvisors.com 2 facts
measurementThe Smoot-Hawley Tariff Act of 1930 imposed a 20% import duty.
claimThe Smoot-Hawley Tariff Act was enacted in June 1930.
U.S. Trade and Tariffs: A Long-Term Perspective - UW-Stevens Point | blog.uwsp.edu Jan 8, 2025 2 facts
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.
accountFollowing the implementation of the Smoot-Hawley Tariff Act of 1930, foreign countries retaliated by raising tariffs on American goods, which worsened the U.S. depression, caused a significant decline in world trade, and hindered the global economy.
Why the US and the WTO should part ways - CEPR cepr.org Jun 25, 2025 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.
The price of protectionism: Understanding the economic tradeoffs of ... statestreet.com 1 fact
claimThe Smoot-Hawley Tariff Act of 1930 is widely regarded as a contributor to the Great Depression.
U.S. tariff outcomes dependent on trading partner responses dallasfed.org May 13, 2025 1 fact
claimThe Smoot-Hawley Tariff Act of 1930 was the last major protectionist spike in the United States and likely worsened the Great Depression.