A Brief History.. continue Protectionism in the 1930s and the Smoot-Hawley Act The Act raised import duties to reduce the volume of imports into the United states with the intent of fostering increased domestic employment. World trade collapsed as other nations countered with raised duties and tariffs of their own Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 2-4 A Brief History … continued Protectionism in the 1930’s and the Smoot-Hawley Act • The Act raised import duties to reduce the volume of imports into the United States, with the intent of fostering increased domestic employment. World trade collapsed as other nations countered with raised duties and tariffs of their own