Assessing the Impact of the Hawley-Smoot Tariff- Success or Failure in the Context of 20th Century Trade Policies-
Was the Hawley-Smoot Tariff Successful?
The Hawley-Smoot Tariff, implemented in 1930, was a significant piece of legislation aimed at protecting American industries from foreign competition. However, its success is a topic of debate among historians and economists. This article will explore the various aspects of the Hawley-Smoot Tariff to determine its overall success or failure.
The primary objective of the Hawley-Smoot Tariff was to shield American industries from foreign competition by imposing high tariffs on imported goods. The tariff was named after its sponsors, Senator Reed Smoot of Utah and Representative Willis C. Hawley of Oregon. Proponents of the tariff argued that it would stimulate domestic production, create jobs, and improve the economic conditions of the United States.
One of the most immediate impacts of the Hawley-Smoot Tariff was a significant decrease in international trade. The high tariffs led to a reduction in the volume of imports and exports, which, in turn, resulted in a decrease in the overall economic growth of the United States. This decline in trade was particularly damaging during the Great Depression, as it exacerbated the economic downturn and contributed to the prolonged period of economic hardship.
The retaliatory tariffs imposed by other countries also had a negative impact on the United States. Many nations responded to the high tariffs by imposing their own tariffs on American goods, leading to a further reduction in international trade. This retaliatory action was particularly harmful to American agriculture, as it was heavily reliant on foreign markets.
Moreover, the Hawley-Smoot Tariff did not achieve its intended goal of protecting American industries. While some industries did benefit from the high tariffs, others suffered due to the increased costs of imported raw materials and components. Additionally, the protectionist measures did not lead to a substantial increase in domestic production or job creation.
The long-term effects of the Hawley-Smoot Tariff were also detrimental to the United States. The tariff was one of the factors that contributed to the breakdown of the international trading system, which had been in place since the end of World War I. This breakdown eventually led to the outbreak of World War II, as nations became more isolated and suspicious of each other.
In conclusion, the Hawley-Smoot Tariff was not successful in achieving its objectives. While it may have provided some short-term benefits to certain industries, its negative impact on international trade and the economy during the Great Depression overshadowed these gains. The tariff’s legacy is one of economic isolation and the exacerbation of the global economic downturn.
