The Smoot-Hawley Tariff Act of 1930 is thought to have contributed to the severity of the 1930s depression because of the rise in tariff rates and the consequential drop in private consumption,savings and investment.

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The Smoot-Hawley Tariff Act of 1930 increased tariff rates on thousands of imported goods, which led to retaliatory tariffs from other countries, decreased international trade, and a reduction in private consumption, savings, and investment. This contributed to the severity of the 1930s depression.

The Smoot-Hawley Tariff Act of 1930 Is Thought to Have