The Smoot-Hawley tariff was put before US Congress when nation sank deeper into an economic abyss but it was widely considered as a disastrous step by the Government. Tariff is the tax which is applied to any imported Goods. The government applies high tariffs on imported goods as to keep domestic business protected and away from foreign competition. 1929 The US stock market crashed which signaled the inception of the Great Depression of the 1930s in America. It was such a grave that it can be illustrated by 9000 banks closed between 1929 to 1933. US Gross national product declined sharply from $103 to $58 billion during the same period. It resulted in a loss of nearly 25% of the job in the US. It not only affected America but also other countries too. Us government tried to emerge out of this situation. Two Republican legislators senator Reed Owen Smoot of Utah and Representative Willis c Hawley of Oregon proposed that agricultural tariffs should be raised. The so-called Hawley-Smoot Tariff recommended for a significant rise in tariff rates on farm products imported into America. They suggested that it would improve the sell of American farm goods as this would cheapen indigenous item. At later stages due to an influence of some corporate lobbyist other manufactured goods too got their price raised.