Smoot–Hawley Tariff Act Law and Legal Definition

Smoot–Hawley Tariff Act was enacted in 1930. The object of the Act is to protect the American business and farmers. With this intention the Act increased the import rate by 50% there by creating a world wide pressure during the time of great depression. The Act imposed tariff on over 20,000 imported products. The result of the Act was the push towards multi-lateral trading agreements.