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Simple English definitions for legal terms
Tariff Act of 1930
Read a random definition: international application
A quick definition of Tariff Act of 1930:
The Tariff Act of 1930, also known as the Smoot-Hawley Tariff Act, was a law that increased taxes on goods imported into the United States. This made it more expensive for other countries to sell their products in the US, and caused those countries to raise their own taxes on American goods. This led to a decrease in international trade and is believed to have contributed to the Great Depression, a time of economic hardship in the US and around the world.
A more thorough explanation:
The Tariff Act of 1930, also known as the Smoot-Hawley Tariff Act, was a law passed in 1930 that increased the rates of tariffs on imported goods in the United States. This law was created to protect American businesses and farmers from foreign competition. However, it had unintended consequences that worsened the Great Depression.
The Smoot-Hawley Tariff Act raised tariffs on most imported goods, making them more expensive for American consumers. This led to retaliatory tariffs from other countries, which hurt American exports and made the economic situation worse.
For example, if a foreign company wanted to sell a product in the United States, they would have to pay a higher tariff than before. This made their product more expensive for American consumers, who might choose to buy a cheaper American-made product instead. However, other countries responded by raising their own tariffs on American goods, making it harder for American businesses to sell their products overseas.
Overall, the Tariff Act of 1930 had negative effects on the American economy and worsened the Great Depression.