Question

How did the Hawley-Smoot Tariff damage/hurt America’s economy?

Answer 1

Hint: The Smoot-Hawley Tariff Act, originally the United States Tariff Act of 1930, is also known as the Hawley-Smoot Tariff Act (June 17, 1930).

Complete answer:
The Smoot-Hawley Tariff Act, also known as the Hawley-Smoot Tariff Act, was enacted by the United States on June 17, 1930, to protect American enterprises and producers by increasing import tariffs, putting a strain on the international economic situation during the Great Depression.

Senator Reed Smoot of Utah, chairman of the Senate Finance Committee, and Representative Willis Hawley of Oregon, chairman of the House Ways and Means Committee, are the main supporters of the bill. It was the last piece of legislation passed by the United States Congress that fixed real tariff rates.

The Smoot-Hawley Tariff Act increased the already strong tariff rates in the United States. The Fordney-McCumber Act, introduced in 1922, was one of the most restrictive protectionist tariffs ever enacted in the United States, bringing the average import tax to about 40%.

The Fordney-McCumber tariff drew retaliation from European governments, but it had no effect on US economic growth.

Agricultural interests in the United States pressed the federal government for safeguards from agricultural impoverishment during the 1920s, when European farmers returned from World War I and their American counterparts faced heavy competition and declining rates due to overproduction.

Republican presidential candidate Herbert Hoover pledged to raise tariffs on agricultural products during his campaign in 1928, but after taking office, lobbyists from other economic industries persuaded him to accept a larger rise.

And the fact that most Republicans favoured raising tariffs, an attempt to do so in 1929 failed, primarily due to resistance from moderate Republicans in the US Senate.

Note: The Smoot-Hawley Act was enacted with the aim of providing more protection to American farmers who were struggling to compete with agricultural imports from other countries, especially Europe.

 Soon after, lobbyists representing other American industries demanded the same level of security for their own brands.