The Smoot-Hawley Act increased tariffs on foreign imports to the U.S. by about 20%. At least 25 countries responded by increasing their own tariffs on American goods. Global trade plummeted, contributing to the ill effects of the Great Depression.
The reciprocal trade agreement act not only give President Franklin D. Roosevelt the authority to adjust tariff rates, but also the power to negotiate bilateral trade agreements without receiving prior congressional approval.
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