What was a key outcome of the Smoot-Hawley Tariff Act?

What was a key outcome of the Smoot-Hawley Tariff Act?

• A. It reduced tariff levels globally
• B. It created a free-trade policy
• C. It established very high tariffs and led to retaliatory tariffs
• D. It had no effect on international relations

Answer: (C)

The key idea here is how protectionist policy can backfire by hurting trade and provoking a response from other countries. The Smoot-Hawley Tariff Act raised U.S. tariffs to very high levels on thousands of imported goods, aiming to protect American industries during the Depression. But those steep duties triggered retaliatory tariffs from other nations on American exports, leading to a significant drop in global trade and worsening economic conditions for many countries, including the United States. So the best description of the outcome is that it established very high tariffs and led to retaliatory tariffs. The other options don’t fit because tariffs were not lowered globally, it did not create a free-trade policy, and it did affect international relations through retaliation.

The key idea here is how protectionist policy can backfire by hurting trade and provoking a response from other countries. The Smoot-Hawley Tariff Act raised U.S. tariffs to very high levels on thousands of imported goods, aiming to protect American industries during the Depression. But those steep duties triggered retaliatory tariffs from other nations on American exports, leading to a significant drop in global trade and worsening economic conditions for many countries, including the United States. So the best description of the outcome is that it established very high tariffs and led to retaliatory tariffs. The other options don’t fit because tariffs were not lowered globally, it did not create a free-trade policy, and it did affect international relations through retaliation.