What was a primary cause of the economic crisis that led to the Great Depression?

High tariffs on imported goods played a significant role in precipitating the economic crisis that led to the Great Depression. The implementation of these tariffs, notably through the Smoot-Hawley Tariff Act of 1930, drastically increased import duties on a wide range of products. This move aimed to protect American industries by shielding them from foreign competition; however, it had the unintended consequence of provoking retaliatory tariffs from other countries. As global trade volumes declined, economies worldwide were further strained, which exacerbated the economic downturn.

This contraction of international trade limited markets for businesses and farmers and contributed to a loss of jobs, leading to reduced disposable income and consumer spending. Ultimately, high tariffs created a ripple effect that negatively impacted not just the U.S. economy but also economic conditions around the globe, worsening the overall situation that contributed to the onset of the Great Depression.