Smoot–Hawley Tariff Act (1930)
U.S. president Herbert Hoover signs the Smoot–Hawley Tariff Act into law.
Historical Context
The Great Depression began in October 1929 with the stock market crash, sending unemployment soaring and farm prices plummeting. Senator Reed Smoot of Utah and Representative Willis Hawley of Oregon proposed raising import tariffs dramatically to protect American farmers and manufacturers from foreign competition. Despite a petition signed by over 1,028 economists urging President Hoover to veto the bill, the legislation passed Congress in May 1930. Hoover himself had reservations but faced enormous political pressure from agricultural and business interests, and signed it into law.
and food for starving citizens in Europe, director of the American Relief Administration, which led post-war infrastructure and food relief in Europe, and established the Commission for Polish Relief.Did You Know?
Over 1,028 American economists signed an open letter urging President Hoover to veto the Smoot-Hawley Tariff Act, warning it would trigger foreign retaliation and deepen the Depression. Henry Ford personally visited the White House to argue against it — but Hoover signed it anyway.
The Legislation
On June 17, 1930, President Hoover signed the Smoot-Hawley Tariff Act, raising import duties on over 20,000 goods to record-high levels, with average rates rising to around 45–50%. The bill was intended primarily to protect American agricultural products but was extended to cover manufactured goods during congressional debate. Immediately after its passage, trading partners retaliated: Canada, Britain, France, Germany, and dozens of other nations imposed counter-tariffs on American exports.
Lasting Impact
Smoot-Hawley is widely considered to have worsened the Great Depression. Between 1929 and 1932, world trade fell by 66 percent. American exports dropped from $5.2 billion in 1929 to $1.7 billion in 1932, and unemployment rose to 25 percent. The catastrophic failure of the tariff shaped U.S. trade policy for decades, leading directly to the Reciprocal Trade Agreements Act of 1934, which gave the president authority to negotiate lower tariffs with trading partners. It remains a cautionary tale cited in trade policy debates today.