The Great Depression, one of the most severe economic downturns in history, was significantly influenced by a trade tariffs war. The Smoot-Hawley Tariff Act of 1930, enacted by the United States, played a pivotal role in this economic catastrophe. This legislation aimed to protect American industries by imposing high tariffs on imported goods. However, it backfired spectacularly.

Countries around the world retaliated by raising their own tariffs, leading to a dramatic decline in international trade. As global trade plummeted, economies worldwide suffered. The reduction in trade exacerbated the economic downturn, leading to widespread unemployment, business failures, and financial instability.

The trade tariffs war, initiated by the Smoot-Hawley Tariff Act, is a stark reminder of the interconnectedness of global economies and the potential consequences of protectionist policies.