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How did investors fear as a result of the Smoot-Hawley tariff act?

Falling prices of goods is what investors feared would happen because of the Smoot-Hawley Tariff Act.


What did the Smoot Hawley tariff act of 1930 do?

Raised tariffs on imported goods


What best describes the smoot-hawley tariff?

The Smoot-Hawley Tariff, enacted in 1930, was a protectionist trade policy that raised tariffs on hundreds of imported goods in the United States. Its intent was to protect American industries during the Great Depression, but it led to retaliatory tariffs from other countries, exacerbating global trade tensions and worsening the economic downturn. The tariff is often cited as a significant factor in the deepening of the Great Depression, as it stifled international trade and harmed both domestic and foreign economies.


When was Clement Smoot born?

Clement Smoot was born in 1884.


Why did so many banks collapse react to the Hawley Smoot Tariff?

Many banks collapsed in the wake of the Hawley-Smoot Tariff because the tariff led to a significant reduction in international trade, exacerbating the economic downturn during the Great Depression. As tariffs increased, foreign countries retaliated with their own tariffs, leading to a sharp decline in exports. This situation weakened businesses that relied on trade, resulting in widespread bankruptcies and loan defaults, which in turn destabilized the banking system. The resulting loss of confidence in banks led to widespread bank runs, further contributing to their collapse.