Tariff Act Of 1930

Tariff Act Of 1930

Summary of Tariff Act Of 1930

Also known as the Smoot- Hawley Act, this established the highest rates of duty ever imposed by the United States. Its passage was essentially a response to domestic unemployment during the Depression and protectionist forces in the agricultural and certain manufacturing sectors. Other nations accompanied the United States in adopting protective tariff measures, resulting in a significant overall decline in the level of world trade. In order to revitalize trade, Congress authorized the president, under the Reciprocal Trade Agreements Act of 1934, to grant tariff reductions to trading partners in return for like concessions on American goods. The result of this arrangement, over time, was two tariff schedules: one representing the statutory rate embodied in the Smoot-Hawley Act, and the other reflecting the lower, most favored nation rates negotiated under the Reciprocal Trade Agreements Act and subsequent legislation. The rates of duty imposed by the Smoot-Hawley Act remain in effect, as reflected in Column 2 of the Tariff Schedules of the United States, and are applied on imports from nations to which most favored nation status has not been granted.

The Tariff Act of 1930, although amended many times, remains the cornerstone of U. S. import control legislation.

(Main Author: William J. Miller)


Posted

in

, ,

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *