The Smoot-Hawley tariff invited retaliation from all of our trading partners. Prior to the tariff we had a trade surplus, exports greater than imports; after the tariff we had a trade deficit, imports greater than exports. Yes,imports fell as a result of the tariff, but our exports to other countries fell even more.
>The Smoot-Hawley tariff invited retaliation from all of our trading partners. Prior to the tariff we had a trade surplus, exports greater than imports; after the tariff we had a trade deficit, imports greater than exports. Yes,imports fell as a result of the tariff, but our exports to other countries fell even more.
Still nothing to do with your assertion that Tariffs caused the great depression.
You could have eliminated ALL trade in the 1930’s and it would of had a small impact on GNP. Why? Because trade only made up 4% of the whole economy.