Back to today’s briefing

Story perspectives

Smoot-Hawley Act: A Catalyst for Great Depression's Woes

5/10/2025

27 2

Summary

Story summary

The 1930s economic crisis intensified due to the Smoot-Hawley Act, which raised tariffs and triggered retaliatory actions.
Increased tariffs raised production costs, negatively impacting consumers and businesses alike.
The act resulted in a 61% drop in US exports and a 60% decline in global trade, worsening the Great Depression.
Current protectionist policies, such as Trump's tariffs, echo historical risks to global economic stability.

1 of 1

Story summary

The 1930s economic crisis intensified due to the Smoot-Hawley Act, which raised tariffs and triggered retaliatory actions.
Increased tariffs raised production costs, negatively impacting consumers and businesses alike.
The act resulted in a 61% drop in US exports and a 60% decline in global trade, worsening the Great Depression.
Current protectionist policies, such as Trump's tariffs, echo historical risks to global economic stability.