History Daily The Smoot-Hawley Tariff Act
Jun 17, 2025
Explore the chaos of the 1929 stock market crash, as traders faced panic on the floor of the New York Stock Exchange. The Smoot-Hawley Tariff Act, enacted in 1930, was supposed to protect American jobs but ended up exacerbating the Great Depression and souring global trade. Delve into President Hoover's struggle with political pressures and the devastating consequences of protectionist policies. Learn how the 1934 Reciprocal Trade Agreements Act marked a pivotal shift towards cooperation in international trade, laying groundwork for economic stability.
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Black Tuesday Stock Market Crash
- On October 29, 1929, known as Black Tuesday, the stock market crashed dramatically, signaling the start of the Great Depression.
- Panic selling and loss of public confidence caused $14 billion in market value to vanish in a single day.
Ineffective Geneva Conference Results
- The 1927 World Economic Conference in Geneva sought trade liberalization but had no enforcement power.
- Many nations, including the US, ignored the call to reduce tariffs and continued protectionist policies.
US Protectionism and Market Decline
- U.S. tariffs were already high with the Fordney-McCumber Tariff, and President Hoover promoted protectionism.
- Despite initial economic optimism, the stock market crashed and a correction never occurred, leading to worsening conditions.