Great depression tariffs

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The Hawley-Smoot Tariff Act of 1930 was a law that raised import duties on over 20,000 goods, and it backfired in several ways:

• Decreased trade

  The Smoot-Hawley Tariff led to other countries raising their own tariffs on American goods, which decreased trade and made it harder for the US to export goods. 

  Increased the cost of living

  The tariff made imports unaffordable for most people, except the wealthy.

   

  Contributed to bank failures

  The decrease in exports and the cost of living contributed to bank failures, especially in agricultural areas. 

  Exacerbated the Great Depression

  The Smoot-Hawley Tariff was a major factor in the Great Depression, along with other factors. Economists and historians generally agree that the tariff made the Great Depression worse. 

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Won’t apply now