Yeah right. Economists said that they were one of the reasons that deepened the Great Depression.. Does this sound familiar
Purpose:
The act was designed to protect American farmers and manufacturers by making imported goods more expensive, thus encouraging consumers to buy domestically produced products.
Impact:
The Smoot-Hawley Tariff Act raised tariffs on over 20,000 imported goods, significantly increasing the average tariff rate.
Retaliation:
Other countries retaliated with their own tariffs on American goods, leading to a decline in U.S. exports and a collapse of international trade.
Consequences:
The act is widely considered to have deepened the Great Depression by making it harder for American businesses to sell goods abroad and contributing to a global economic downturn.
Criticism:
Many economists and historians criticize the act as a policy misstep and a cautionary example of protectionism.
Later Developments:
The act was eventually followed by the Reciprocal Trade Agreements Act of 1934, which sought to promote more liberal trade agreements.