FORDNEY MCCUMBER TARIFF ACT SEPTEMBER 1922 FORDNEY MCCUMBER TARIFF ACT BUSINESS/COMMERCE TRADE REGION EUROPE U.S GOV'T LEGISLATIVE U.S GOVERNMENT AND CONSTITUTION ECONOMY AND LABOR IN SEPTEMBER 1922 CONGRESS PASSED THE FORDNEY MCCUMBER TARIFF ACT TO PROTECT NEWLY EXPANDING INDUSTRIES FOLLOWING WORLD WAR I THE ACT RAISED TARIFFS OR TAXES ON IMPORTS TO THE HIGHEST LEVELS IN U.S HISTORY IT ALSO AUTHORIZED THE PRESIDENT TO INCREASE OR LOWER THE TARIFF UP TO FIFTY PERCENT TO MEET THE DEMANDS OF THE CHANGING WORLD MARKET THE ACT TARGETED RATE INCREASES ON CHEMICAL AND METAL PRODUCTS AND ON AGRICULTURAL PRODUCTS ARRIVING FROM EUROPE AFTER THE DEVASTATION OF THE WAR IN EUROPE THE UNITED STATES BECAME A DOMINANT ECONOMIC POWER THE UNITED STATES VIEWED TARIFFS AS A WAY OF MAINTAINING AND PROTECTING ITS EMERGING INDUSTRIES AGAINST FOREIGN COMPETITION THIS PROTECTIONIST APPROACH HAD A NEGATIVE EFFECT HOWEVER THE TARIFF EFFECTIVELY BLOCKED EUROPEAN NATIONS FROM SELLING THEIR PRODUCTS IN THE UNITED STATES IN TURN THIS PREVENTED THEM FROM EARNING ENOUGH REVENUE TO REPAY LOANS THE UNITED STATES HAD MADE TO THEM DURING THE WAR THE TRADE PROBLEMS BETWEEN EUROPE AND THE UNITED STATES DURING THE 1920S HELPED SET THE STAGE FOR THE GREAT DEPRESSION
