What is the Smoot-Hawley Tariff Act and what impact did it have on the global economy?

What is the Smoot-Hawley Tariff Act and what impact did it have on the global economy?

The Smoot-Hawley Tariff Act, passed in 1930, was a protectionist measure implemented by the United States during the Great Depression. It significantly raised tariffs on over 20,000 imported goods, aiming to protect domestic industries and stimulate the American economy. However, its impact on the global economy was largely negative. Many countries retaliated by imposing their own tariffs, leading to a decline in international trade and exacerbating the economic downturn. The act is widely criticized for deepening the Great Depression and contributing to the spread of economic nationalism worldwide.