The hawley smoot tariff of 1930 has doubtless occasioned more comment, more controversy, more vituperation in the national as well as in the international sphere than any other tariff measure in history. Virtually all american economists united in urging hoover to veto smoot hawley, but hoover ignored them all and signed it into law in june 1930. It is argued that the smoothawley tariff act should be. Tuesday marks the anniversary of one of the most destructive pieces of legislation in u. Despite these objections, in june of 1930 the smoothawley tariff act aka the tariff act of 1930, which raised average tariffs to as much as 60 percent, was passed into law. It is often associated withand sometimes blamed forthe onset of the great depression, the collapse of world trade, and the global spread of protectionism in the 1930s. This entry about hawleysmoot tariff has been published under the terms of the creative commons attribution 3. After world war ii, that understanding supported a push towards multilateral trading agreements that would prevent. The smoothawley tariff act raised around 900 import tariffs by an average of. Jul 03, 2019 the smoothawley tariff was the beginning of the end of major us protectionism in the 20th century.
Smooth hawley tariff act was introduced in the united states in 1930. The history of the act and the context of its passing are highlighted, and readers are encouraged to think about the factors that led to its passing as well as its. Tariff levels have remained fairly stable, while the impact of a seemingly. The federal reserve, however, did not push reserves into the banking. The hawley smoot tariff was signed into law on june 17, 1930, eight months after the 1929 wall street crash and the start of the great depression. The smoothawley tariff act revisited cambridge scholars. It was introduced to support domestic farmers suffering the great depression. Did smoothawley bring ragnarok anytime an american. President herbert hoover on 17 june 1930, that placed duties taxes on over 20,000 imported goods. The smoothawley tariff act was a grave error for u. Dec 10, 2016 working with congressman willis c hawley, chairman of the house ways and means committee, he devises the tariff act, which becomes law, after months of horsetrading, in june 1930. An act to provide revenue, to regulate commerce with foreign countries, to encourage the industries of the united states, to protect american labor, and for other purposes.
In 1930, a large majority of economists believed the smoothawley tariff act would exacerbate the u. Smoothawley tariff project gutenberg selfpublishing. But the tariff act produced unexpected negative results. Mar 14, 2018 the smoothawley tariff bill finally passed in june 1930. Calls for increased protection flooded in from industrial. Nicknames smoot hawley tariff, hawley smoot tariff. The great depression, smoothawley, and the reciprocal trade. Hawleysmoot tariff project gutenberg selfpublishing. The reason the law was passed was to significantly raise to create high protective tariffs taxes and to increased rates on imported foreign goods. Pressure groups from countless industries descended upon washington to argue for tariff protection. Many american trading partners retaliated in response to this tariff. Tariffs in the 1930s and the 21st century luiss guido. Hawley smoot tariff actthe hawley smoot tariff act was passed by the u.
The legislative process that the smoothawley tariff underwent beginning in 1928 was the. President hoover desired a limited upward revision of tariff rates with general increases on farm products and adjustment of a few industrial rates. The best case for the view that there was extensive foreign retaliation against smoot hawley is given in joseph jones, tariff retaliation. The hawleysmoot tariff might have even worsened the great depression. This month marks 90 years since the us signed into law the sm. Despite these objections, in june of 1930 the smoot hawley tariff act aka the tariff act of 1930, which raised average tariffs to as much as 60 percent, was passed into law. Clearly, not all of the blame for the higher tariff in the early 1930s can be blamed on senator smoot and congressman hawley. President herbert hoover on 17 june 1930, that placed duties taxes on over 20,000 imported goods its political intent was to preserve american jobs, particularly in the farming sector, by discouraging imports quoting the us department of state on the origin of the act.
Jan 29, 2017 willis hawley and reed smoot were reviled for a bill blamed for triggering the great depression. Smoothawley tariff a high tariff enacted in 1930 during the great depression. The catastrophic results of the smoothawley tariff of 1929. From smoothawley to america first and strategic sovereignty. The fordneymccumber tariff of 1922 had been much worse. Hawley and signed into law on june 17, 1930, that raised u. What were the reasons that congress passed the act and why did president hoover sign it. October 23 rd is the 89 th anniversary for the 1 st day of the crash of 1929. Most economists blame it for worsening the great depression.
The smoot hawley tariff was the cause of the crash of 1929 which commenced 89 years ago on october 23, 1929. To be fair, economic historian al eckess trade history book openin. Smoot hawley tariff a high tariff enacted in 1930 during the great depression. The effect of the smoothawley tariff act on the stock market. Leading economist and business leaders begged hoover not to sign it. In early 1929 he was contemplating pushing for further tariff reductions, but this.
Unfortunately, as the affordable care act and doddfrank wall street reform and consumer protection act demonstrate, washington continues its lo. Hawley smoot tariff act is the popular name of a piece of legislation of congress by which it should be cited. Why was the hawley smoot tariff a blow to the trade belt. The smoot hawley tariff act goal was to increase u. The results massive expansion in the agricultural production sector outside of europe during world war i led, with the postwar recovery of european producers, to massive agricultural overproduction during the 1920s. Together they sponsored the tariff bill of 1930 which became known as the smoot hawley tariff act. This case examines how the smoot hawley act was a precursor to the many protectionist tendencies in the united states today, and places it in the economic history of the country. Smoothawley and the great depression princeton university.
The smoothawley tariff and the great depression foundation for. The hawleysmoot tariff and the great depression uneasy. The economist magazine argued that the passing of the smoothawley tariff act was the tragiccomic finale to one of the most amazing chapters in world tariff history one that protectionist enthusiasts the world over would do well to study. Its political intent was to preserve american jobs, particularly in the farming sector, by discouraging imports. Slang for someone who wants the government to keep the federal budget under control. Apr 06, 2021 here is the answer for the question smoot hawley tariff. Smoot hawley tariff act 1930 was particularly destructive because the united states was the worlds largest creditor. Library of congress two years later its signing, unemployment had reached almost 24 percent in the u. The act raised us tariffs on over 20,000 imported goods. It was merely the culminating act in a long series of american exclusions and restrictions to spanish trade since the war, some legal, some extralegal, some intentionally exclusive, some unintentionally so, which have kept the spanish people in a chronic state of agitation against the united states. As chair of the house ways and means committee in 19291931, he cosponsored with senator reed smoot rut the smoot hawley tariff act of 1930, one of the most controversial measures ever passed by the u. Dominion bureau of statistics, canada year book, 1932, table 7, pp. Deficit hawks espouse some combination of increased taxes and decreased government spending to. Protection, retaliation, and response, i93 0i939 jstor.
As the united states slid into depression, the act represented a desperation move by con. Trumps 2019 protection could push china back to smoothawley. The tariff act of 1930 commonly known as the smoothawley tariff or hawley smoot tariff. Seeking to protect domestic sugar producers in the wake of the crisis of 1929, the u. The hawley smoot tariff was no rude shock to spain. It is often associated withand sometimes blamed forthe onset of the great depression, the collapse of world trade, and the. Well, it was probably because international coordination in reducing tariff as a trade policy dates back to the 1930s, when the us passed an inadequate tariff law, the smoothawley act as it was known. The smoothawley tariff act revisited by bernard c beaudreau. The smoothawley tariff act of 1930, named after two congressmen who.
Discuss the history of the 1930 smoot hawley tariff enacted by the united states. Congress on june 18, 1930 and remained in effect until june 8, 1934. This book presents an alternative view, based in large measure on recently published studies. What impact did this have upon global trade and the global economy during the 1930s. The tariff act is named after congressman willis hawley and senator reed smoot. Heavily featured in the book dave barry slept here. Repercussions of the hawley smoot bill, philadelphia. The tariff act of 1930 know as the smoot hawley tariff was protectionist trade legislation signed into law by u. Often acts like the hawley smoot tariff act are given popular or alternate names that may not be used in the code. Hawley smoot tariff act hawley smoot tariff act, 1930, passed by the u. The catastrophic results of the smoothawley tariff of. Smoothawley tariff act 1930 i quote randomly from books. Some economists are worried about the return of a smoot hawley mentality to the world stage hence our holiday lookback at the original event.
The hawley smoot tariff might have even worsened the great depression. Oct 24, 2017 the smoothawley tariff of 1930, which raised u. Over economists signed an open letter to president hoover, begging him to veto the bill. Trumps 2019 protection could push china back to smoot. It is often associated with and sometimes blamed for the onset of the great depression, the collapse of world trade, and the global spread of protectionism in the 1930s. In a speech to the house of commons in 1948, winston churchill.
The great depression, smoothawley, and the reciprocal. Learn about the development and effects of the smoothawley tariff act in this article. Smoothawley tariff act overview, legislative history, impact. Mar 23, 2018 smoot hawley tariff act of 1930 sent the country into a tailspin as hundreds of thousands were homeless and soup kitchens became a source of meals. It increased 900 import tariffs by an average of 40% to 50%. Almost 900 tariff imports were raised by 40% to 48%. Apr 26, 2012 according to him, the best guess is that smoot hawley probably raised the average tariff on dutiable imports by about 1518 percent, an increase of about 6 percentage points. The smoothawley tariff act raised us tariffs on over 20,000 dutiable items to record levels, and, in the opinion of many economists, protracted or initiated the great depression. In may 1930, 1,028 economists signed a petition protesting the tariff act and beseeched president hoover to veto the bill. It based on the house on may 28, 1929, by 284 147 while the senate passed it on march 24, 1930, by 5331. The 1930 act s consolidation of authority to set tariffs in the tariff commission and the presidents hands laid the foundation for the further expansion of. Action had been taken on the tariff in 1922 by the harding administration see fordneymccumber tariff, but special interests were clamoring for a new law when herbert hoover took office. Youll find the correct answer below smoot hawley tariff the correct answer is 1930 an act, sponsored by united states senator reed smoot and representative willis c. Nov 20, 2020 the smoothawley act is the tariff act of 1930.
Hawley, it was signed by president herbert hoover on june 17, 1930. In dalios book, he claims, stocks sold off sharply as it became clear the tariff bill. By taxing imported goods, congress hoped to stimulate american manufacturing, but the tariff triggered retaliatory tariffs in other countries, which further hindered global trade and led to greater economic contraction. The tariff act of 1930 that raised import duties to protect u. Compared with other tariff bills congress had passed, that wasnt especially high.
The smoot hawley tariff act of 1930 remains one of t. Hailed by its cosponsor hawley as the precursor to a renewed era of prosperity, the act hikes tariffs on the more than 20,000 dutiable goods to an average of. It raised tariffs an average of 59 percent on more than 25,000 items. President hoover was not happy with the smoot hawley bill, especially the increased tariffs on many manufactured goods. Smoot hawley act implications are often attributed to have intensified great depression. The tariff act of 1930, which increased nearly 900 american import duties, was. Hawleysmoot tariff act legislation us encyclopedia of law.
Political economy with some of their application to social philosophy, b. The hawley smoot tariff and the great depression, 1928. Clinton administration, which was pushing a reluctant. Pdf hawleysmoot tariff act 1921 antonio santamaria. As bad as obamacare is, hawleysmoot tariff act was worse. Republican willis chatman hawley represented the 1st congressional district in northwest oregon from march 1907 to march 1933. Smoot hawley and the great depression isbn 978691150321 princeton university press, 2011 p. Sponsored by senator reed smoot and representative willis c. The republicans domination of congress throughout the 1920s afforded them ample opportunity to enact legislation that was acceptable to the business and financial communities. While demanding that debtors make their payments, the united states made it more difficult for them to do so this contributed to the catastrophic downward spiral of.
Taken together, such steps would also raise us tariffs on china to levels similar to those resulting from the infamous smoothawley tariff act of. In fact, four years earlier, the smoot hawley tariff act reflected growing support for diminishing the role of partisan politics in trade matters and paved the way for the rtaa. How did the smoothawley tariff affect the american economy. President herbert hoover signed the act into law on june 17, 1930 the act was championed by senator reed smoot, a republican from utah, and representative willis c. In fact, few economists think the smoothawley tariff as it is most often. Beginning with the 1934 reciprocal trade agreements act, which president franklin roosevelt signed into law, america began to emphasize trade liberalization over protectionism. In the smoothawley act of 1 930, perhaps the most infamous tariff on record, american. In his book on american history, the humorist dave barry went a step. China trade negotiations, the confirmation of brexit, and various other factors, 2019 was the year global trade felt a backlash. This act was responsible for steep increase in us and eu tariffs that in result affected international trade. The hawley smoot tariff act was signed into law by president.
1085 269 1244 588 1277 1154 1554 1153 1764 1007 1067 519 604 1176 1026 1112 1502 1589 325 1538 614 616 1153 809 282 91 1811 947 185