The Blue Jays have now moved two pitchers before Monday's deadline, having also dealt Francisco Liriano to the Astros for outfielders Norichika Aoki and Teoscar Hernandez.
Smith returns to Cleveland after pitching for the Tribe from 2010-2013, during which he compiled a 2.76 ERA over 303 appearances in an Indians uniform. He'll add to a dominant bullpen that already features Andrew Miller and Cody Allen, and will likely slot into the seventh inning for the Tribe.
Smith, 33, has a 3.28 ERA (2.31 FIP) in 35.2 innings with the Blue Jays, and is 13/14 in hold opportunities. His swing-and-miss numbers have seen an interesting jump for an 11-year veteran, as his 12.9 K/9 is his first double-digit mark in a single season.
Pannone, 23, was drafted by the Indians in the ninth round of the 2013 MLB draft, and has a 1.96 ERA and 9.8 K/9 across 110.0 innings in A+/AA this season. The left-hander did not rank among the Indians' top 30 prospects according to MLB Pipeline, though his strong numbers this season have put him on the map.
Taylor, a 19-year-old second baseman, was drafted in the 10th round by Cleveland in 2016 and has progressed slowly in his 1+ years in pro ball. The California native has played just 28 games at Low-A Mahoning Valley in 2017, where he's slashed .300/.327/.467 in 130 plate appearances.