Willis C. Hawley (left) and Reed Smoot meeting shortly after the signing of the Smoot-Hawley Tariff Act.
Library of Congress
(Note: This episode originally ran in 2018.)
The Smoot-Hawley Tariffs were a debacle that helped plunge America into the Great Depression. What can we learn from them?
Today on the show, we tell the nearly 100-year-old story of Smoot and Hawley, that explains why Congress decided to delegate tariff power to the executive branch in the first place. It’s a story that weaves in wool, humble buckwheat, tiny little goldfish, and even Ferris Bueller… Anyone? Anyone?
It’s also what set the stage for the Trump tariffs.
President-elect Donald Trump enacted a heap of import taxes in his first term, in particular on goods from China. President Biden’s administration largely kept those tariffs in place, and levied new tariffs as well, on electric vehicles and solar panels.
And now, as Trump’s second presidency is on the horizon, he has promised even more tariffs on Mexico, Canada, China, and even on all imports across the board.
We update this classic episode about the Smoot-Hawley Tariffs, and review the impact of more recent efforts from Trump and Biden alike.
This episode was hosted by Kenny Malone and Sally Helm. It was originally produced by Lena Richards and edited by Bryant Urstadt. This update was produced by Sam Yellowhorse Kesler. A previous update in 2020 was produced by Irena Hwang with help from Gilly Moon. Fact-checking by Sierra Juarez. Alex Goldmark is Planet Money’s executive producer.
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Music: Universal Production Music – “Addicted To You,” “Soul Child,” and “Bugatti”
