What effect did tariffs have on the U.S. economy during the early 1930s?
Understand the Problem
The question is asking about the impact of tariffs on the economy of the United States during the early 1930s, which likely relates to the context of the Great Depression and economic policy decisions made at that time.
Answer
Tariffs reduced global trade and worsened the Great Depression.
Tariffs, particularly the Smoot-Hawley Tariff Act of 1930, raised import duties to protect U.S. businesses but resulted in a significant reduction in global trade, worsening the Great Depression.
Answer for screen readers
Tariffs, particularly the Smoot-Hawley Tariff Act of 1930, raised import duties to protect U.S. businesses but resulted in a significant reduction in global trade, worsening the Great Depression.
More Information
The Smoot-Hawley Tariff Act was a major piece of protectionist legislation that increased U.S. tariffs on many imported goods. This resulted in retaliation by foreign nations, leading to a sharp decline in international trade, which exacerbated the economic conditions of the Great Depression.
Tips
A common mistake is assuming tariffs directly led to the Great Depression. While they worsened the situation, other factors also contributed.
Sources
- Smoot-Hawley Tariff Act | History, Effects, & Facts | Britannica - britannica.com
- What Is the Smoot-Hawley Tariff Act? History, Effect and Reaction - investopedia.com
- Lessons on Free Trade From the Great Depression - heritage.org
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