Smoot-Hawley Tariff (Act)

The Smoot-Hawley Tariff Act, passed in 1930, was a law that significantly raised tariffs (taxes) on imported goods to protect U.S. industries from foreign competition. The goal was to boost domestic manufacturing, but it led to a widespread decline in international trade, as other countries retaliated by imposing their own tariffs. This escalation worsened the global economic downturn during the Great Depression, contributing to increased unemployment and economic hardship worldwide. Overall, the act is often viewed as a policy that unintentionally deepened the economic crisis.