The Hawley-Smoot Tariff, formally known as the Tariff Act of 1930, is an essential piece of economic history that every student should learn about in their studies. As an educator, it’s important to provide context to the Hawley-Smoot Tariff and its impact on the United States and global economy during this tumultuous time. This article aims to provide teachers with the necessary information and framework for effectively teaching students about this key piece of legislation and its significance in history.

Background:

Signed into law by President Herbert Hoover on June 17, 1930, the Hawley-Smoot Tariff was designed to protect American industries by raising tariffs on imported goods to historically high levels. The bill was sponsored by Republican lawmakers Willis Hawley and Reed Smoot and became one of the highest protective tariffs in U.S. history.

Economic Impact:

The immediate impact of the tariff was negative for the United States as well as other countries involved in international trade. Many foreign countries retaliated with their tariffs, leading to a drastic reduction in international trade. This decline further deepened the Great Depression, causing massive unemployment and economic suffering worldwide.

Discussing Protectionism:

To engage your students effectively, it’s essential to discuss protectionism as an economic policy – what it is, its intentions, and potential results. Explain how protectionist policies such as the Hawley-Smoot Tariff sought to protect domestic industries from foreign competition. However, these policies can sometimes have unintended consequences.

International Relations:

As mentioned earlier, the Hawley-Smoot Tariff resulted in many foreign countries retaliating with their tariffs. Encourage your students to think critically about how international relations were affected during this time period and why diplomatic efforts failed. It’s vital to highlight how these economic policies had lingering effects on how nations approached global trade in the future.

The Repeal of Hawley-Smoot Tariff:

The negative consequences of the tariff became apparent, and efforts to repeal it began in the 1930s. It was partially repealed by the Reciprocal Trade Agreements Act in 1934, introduced by President Franklin D. Roosevelt, which marked a shift toward more liberal trade policies.

Lessons Learned and Modern Connections:

To wrap up their learning, have students discuss what lessons we can learn from the Hawley-Smoot Tariff and its effects on the international economic landscape. Encourage them to make connections with current economic issues such as globalization, trade wars, and tariffs that are relevant today. Exploring these connections will deepen their understanding of contemporary economic debates and enhance their overall learning experience.