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How did the Smoot-Hawley Tariff Act affect international trade?

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A long line of unemployed men in coats and hats stands outside a soup kitchen in Chicago, with a storefront sign reading Free Soup, Coffee and Doughnuts for the Unemployed. — Great Depression Unemployed men standing in line outside a soup kitchen, Chicago.

The Smoot-Hawley Tariff Act of 1930 significantly worsened the global economic climate during the Great Depression by triggering a cycle of international retaliation and trade contraction.1

By raising U.S. import duties by approximately 20 percent, the act prompted foreign governments to adopt their own "beggar-thy-neighbour" protectionist policies. This response led to a dramatic decline in global commerce:1
* Trade Volume: The total volume of world trade plummeted from a monthly average of $2.9 billion in 1929 to less than $1 billion by 1933.2
* Bilateral Impact: U.S. imports from and exports to Europe fell by roughly two-thirds between 1929 and 1932.1
* Economic Consequences: The resulting trade barriers, combined with bank failures and credit contraction, deepened the global economic crisis, increased unemployment, and signaled a shift toward U.S. isolationism.12

Ultimately, the act is widely viewed as a failure that hindered international cooperation, a trend that was not reversed until the Reciprocal Trade Agreements Act was signed in 1934 to promote trade liberalization.1