Falling prices of goods is what investors feared would happen because of the Smoot-Hawley Tariff Act.
Raised tariffs on imported goods
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.
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.
The Hawley-Smoot Tariff, enacted in 1930, significantly raised U.S. tariffs on imported goods, prompting other countries to retaliate with their own tariffs. This led to a decline in international trade, worsening the global economic downturn. As countries struggled to export their goods, economic conditions deteriorated worldwide, contributing to the spread of the Great Depression beyond the United States. The resulting trade barriers further isolated economies, exacerbating the financial crisis on a global scale.
The tariff hurt trade with other countries.
The tariff hurt trade with other countries.
International trade slowed down as a result of the Hawley-Smoot tariff.
The Smoot-Hawley Tariff act
Falling prices of goods is what investors feared would happen because of the Smoot-Hawley Tariff Act.
Yes, he did.
Smoot-Hawley Tariff
The tariff hurt trade with other countries
The tariff hurt trade with other countries.
The tariff hurt trade with other countries.
the hawley-smoot tariff caused other countries to retaliate, so markets for American goods dried up
the hawley-smoot tariff caused other countries to retaliate, so markets for American goods dried up