Smoot-Hawley Tariff

The Smoot-Hawley Tariff, enacted in 1930, was a U.S. law that raised import duties on a wide range of goods to protect American businesses from foreign competition during the Great Depression. Its intention was to encourage Americans to buy domestic products. However, it led to retaliatory tariffs from other countries, resulting in decreased international trade, worsening the global economic situation. Historians often view it as a contributing factor to the depth and duration of the Great Depression, highlighting the risks of protectionist trade policies.