TRADE DEALS AND TARIFFS

In June 1930, the Congress of the United States passed the “Smoot-Hawley Tariff Act”.
The original piece of legislation was designed to protect American agriculture but within days, other industries began storming Washington demanding similar protections.
The thinking was that tariffs would protect American industry, save jobs and allow producers to raise the price of their goods.
The effect was almost exactly the opposite. As the US raised protective tariffs, other nations followed suit and international trade stagnated.