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Smoot-Hawley Tariff Act
(redirected from Smoot-Hawley Act)

   Also found in: Financial, Wikipedia 0.01 sec.

Smoot-Hawley Tariff Act

(1930) U.S. legislation that raised import duties by as much as 50%, adding considerable strain to the worldwide economic climate of the Great Depression. Despite a petition from 1,000 economists urging Pres. Herbert Hoover to veto the act, it was passed as a protective measure for domestic industries. It contributed to the early loss of confidence on Wall Street and signaled U.S. isolationism. Other countries retaliated with similarly high protective tariffs, and overseas banks began to collapse. In 1934 Pres. Franklin D. Roosevelt signed the Trade Agreements Act, which reduced such tariffs.



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Protectionism spread like wildfire around the world after the United States passed the infamous Smoot-Hawley Act of 1930.
TRANSFORMATION: THE RECIPROCAL TRADE AGREEMENTS ACT OF 1934 The transformation from the protectionism of the Smoot-Hawley Act of 1930 to the expansionist philosophy of the Reciprocal Trade Agreements Act of 1934 (RTAA) turned the United States from an inward-looking, isolationist, and protectionist country into one focused both on international economic affairs and on exports.
I've joked with colleagues that if I put in the Smoot-Hawley Act today, we could find a number of representatives who would co-sponsor it before they realized it was the same bill that helped set off a worldwide depression.
 
 
 
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