A resolution commemorating the 95th anniversary of the enactment of the Tariff Act of 1930.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 281 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
S. RES. 281

 Commemorating the 95th anniversary of the enactment of the Tariff Act 
                                of 1930.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 17, 2025

 Ms. Cantwell (for herself, Mrs. Shaheen, and Mr. Welch) submitted the 
  following resolution; which was referred to the Committee on Finance

_______________________________________________________________________

                               RESOLUTION


 
 Commemorating the 95th anniversary of the enactment of the Tariff Act 
                                of 1930.

Whereas, on June 17, 1930, President Hoover signed into law the Tariff Act of 
        1930 (commonly known as the ``Smoot-Hawley Tariff Act of 1930'');
Whereas the Smoot-Hawley Tariff Act of 1930 raised tariffs on goods imported 
        into the United States in an attempt to protect farmers and 
        manufacturers in the United States from foreign competition;
Whereas the Senate Historical Office has characterized the passage of the Smoot-
        Hawley Tariff Act of 1930 as ``among the most catastrophic acts in 
        congressional history'';
Whereas the sudden and steep increase in tariffs encouraged retaliation by 
        foreign countries, including major trading partners such as Canada and 
        countries in Europe, which responded by raising their own tariffs on 
        goods imported from the United States, triggering a dramatic reduction 
        in international trade;
Whereas the resulting retaliatory tariffs contributed to a substantial decline 
        in farm and manufacturing exports from the United States, which 
        plummeted from $5,240,000,000 in 1929 to $1,670,000,000 in 1933, a 68 
        percent drop, according to records kept by the Bureau of the Census;
Whereas the tariffs contributed to anti-United States sentiment in foreign 
        countries, leading to consumer boycotts in Canada, France, Spain, Italy, 
        and other countries;
Whereas the effects of the tariffs and counter-tariffs contributed to the Great 
        Depression, during which global trade decreased by as much as 60 
        percent;
Whereas the effects of the tariffs were amplified by deflation, causing the 
        gross domestic product of the United States to fall from 
        $104,600,000,000 in 1929 to $57,000,000,000 in 1933, according to the 
        Bureau of Economic Analysis;
Whereas the unemployment rate spiked from 3.2 percent in 1929 to a peak of 
        approximately 23 percent in 1932, before decreasing slightly to 21 
        percent in 1933, according to the Journal of Economic Perspectives of 
        the American Economic Association;
Whereas, after the tariffs were imposed, the trade surplus of the United States 
        declined because exports fell more than imports;
Whereas, in 1934 Congress directed the President to reduce tariff rates applied 
        by the United States and to seek reductions in tariffs applied to 
        exports from the United States through the Act entitled ``An Act to 
        amend the Tariff Act of 1930'', enacted June 12, 1934 (73 Stat. 943, 
        chapter 474) (commonly known as the ``Reciprocal Tariff Act''), and 
        later Acts that provided the President with trade negotiating objectives 
        and tariff proclamation authority;
Whereas tariffs were decreased in the United States and abroad, falling in the 
        United States from a trade-weighted average of 19.8 percent in 1933 to 
        6.9 percent by 1950, and continuing to fall afterwards as a result of 
        multilateral trade agreements; and
Whereas the United States has since benefitted substantially from an open and 
        rules-based international trading system that promotes innovation and 
        growth, lowers input costs for goods manufactured in the United States, 
        reduces consumer prices, supports supply chain resiliency, and enables 
        the United States to maintain an export market valued at more than 
        $3,000,000,000,000; Now, therefore, be it
    Resolved, That the Senate--
            (1) observes the 95th anniversary of the enactment of the 
        Tariff Act of 1930 (commonly known as the ``Smoot-Hawley Tariff 
        Act of 1930'') as a moment of historical reflection on the 
        consequences of protectionist economic policies;
            (2) views the Tariff Act of 1930 as a significant 
        contributor to the Great Depression;
            (3) affirms the importance of rules-based trade policy that 
        reduces production costs for farmers, manufacturers, and 
        construction firms in the United States, strengthens 
        international economic cooperation, helps provide consumers in 
        the United States with a larger variety of affordable goods, 
        and opens up vast foreign markets to exports from the United 
        States; and
            (4) commits to encouraging trade and economic policies that 
        encourage economic growth and avoid the repetition of historic 
        policy mistakes.
                                 <all>