United States' Smoot-Hawley Tariff Act

The Smoot-Hawley Tariff Act of 1930 was a law enacted by the U.S. Congress to raise tariffs (taxes) on thousands of imported goods. Its goal was to protect American industries and jobs during the Great Depression by making foreign products more expensive. However, the increased tariffs led other countries to retaliate with their own tariffs, significantly reducing global trade. This contraction of international commerce worsened the economic downturn, deepening the Depression. The act is often viewed as a key factor contributing to the global economic decline of the 1930s, illustrating how protectionist policies can have widespread economic impacts.