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In 1930 congress passed the Hawley-Smoot Tariff Act. It was designed to be the highest protective tariff in U.S. history. Was made to protect america famers and manufacturers from foreign competiton. In fact it had the opposite effect by lowering the production of goods, it kept other countries from earning our currency to therefore purchase our goods. The tariff increased unenployment and kept industries from shipping things to Europe. World trade therefore had decreased over the next few years by 4% leading to other countries rebelling against us. They decided to declare their own tariffs for revenge.