High+Tarrifs

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The Hawley-Smoot Tariff
In June of 1930, the Hawley-Smoot Tariff act was signed by congress in an attempt to protect American Farmers from foreign competitors. It raised the prices on over 20,000 imported goods, The act prevented other countries from earning their pay in American currency, so thus they had no means of buying American goods and in return initiated their own tariffs on U.S goods.

The effects of the tariff were opposite of their intentions. Since less goods were coming into the U.S the amount of goods being deported to foreign countries decreased as well. The Hawley-Smoot tariff only added to the unemployment rate during the Great Depression, as world wide trade fell more than forty %