Designed to protect American jobs and farmers from foreign competition. Raised U. S. tariffs on over 20,000 imported goods to record levels. Resulted in retaliatory tariffs from foreign nations that dropped U. S. exports by as much as 50%. Is considered one of the major factors that worsened the effects of the Great Depression in the United States.?

Smoot-Hawley Tariff Act

Explanation:

Smoot-Hawley Tariff Act is also known as US Tariff Act of 1930. It was a legislation to raise the import duties so the American farmers and businesses could be protected.  The legislation got its name from Willis Hawley of Oregon and Reed Smoot of Utah.

Smoot was a senator from Utah and chairman of the Senate Finance Committee while Hawley was chariman of House Ways and Means committee. It was most harsh protectionist tariff in the country's history and raised the import tax by 40 percent.

It was done because American farmers were facing declining prices and competition after first world war during 1920s and the government wanted to improve their situation.  The legislation was passed by narrow margin(44-42) and president Hoover signed the bill on June 17, 1930 and it became a law.

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