The Smoot-Hawley trade war

Mitchener Kris, Kevin O'Rourke (Corresponding author), Kirsten Wandschneider

Publications: Contribution to journalArticlePeer Reviewed


We document the outbreak of a trade war after the United States adopted the Smoot-Hawley tariff in June 1930. U.S. trade partners initially protested, with many eventually choosing to retaliate with tariffs. Using a new quarterly dataset on bilateral trade for ninety-nine countries, we show that U.S. exports to retaliators fell by 28%–32%. Using a second new dataset on U.S. exports at the product level, we find that the most important U.S. exports to retaliating markets were particularly affected, suggesting a possible mechanism whereby the United States was targeted despite most-favoured-nation obligations. The retaliators’ welfare gains from trade fell by 8%–16%.
Original languageEnglish
Pages (from-to)2500-2533
Number of pages34
JournalThe Economic Journal
Issue number647
Publication statusPublished - Oct 2022

Austrian Fields of Science 2012

  • 502049 Economic history


  • CMI
  • Cat1

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