What was the Hawley-Smoot Tariff Act known for?

The Hawley-Smoot Tariff Act is known for establishing the highest protective tariff in U.S. history. Enacted in 1930 during a time of economic downturn, the Act aimed to protect American industries by imposing high tariffs on imported goods. The intention behind this legislation was to bolster domestic production by making foreign products more expensive, thereby encouraging consumers to buy American-made goods.

This decision, however, had significant repercussions on international trade as other countries retaliated with their own tariffs, further deepening the global economic crisis of the Great Depression. The environment of high tariffs created a moment where trade barriers increased, contradicting the idea of promoting free trade and economic cooperation.

Understanding the historical context of the Hawley-Smoot Tariff Act illustrates the complexities of economic policy and its far-reaching effects on both domestic and international economies.