Smoot-Hawley Tariff Act

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.