What was a consequence of the Smoot-Hawley tariff?
A) It lowered tariffs for more than a thousand goods, encouraging international trade and expanding the money supply.
B) It led to a rise in stock market values as investors gained confidence in trade and delayed the onset of the Great Depression for a number of years.
C) It caused the power of corporate lobbyists to decrease, as they were kept from interacting with Congress during the deliberations surrounding the bill.
D) It raised tariffs and as a consequence boosted the sale of goods made domestically and helped prevent further layoffs in the early 1930s.
E) It raised tariffs and provoked foreign countries to raise retaliatory tariffs and, as a consequence, made it harder for American farms and businesses to sell abroad.

Question

Quizplus · Accepted Answer

The Smoot-Hawley tariff raised tariffs on imported goods, which provoked foreign countries to retaliate by raising their own tariffs. This led to a decrease in international trade and made it harder for American farms and businesses to sell their products abroad. As a consequence, the tariff is widely seen as having contributed to the onset and severity of the Great Depression.

What Was a Consequence of the Smoot-Hawley Tariff