The Smoot-Hawley Tariff, signed into law in 1930, had long-lasting effects on America’s economy. Which of the following reflects that? (1 pt)(1 point)

Question

Responses

Tariffs increased the supply of American goods but decreased the amount of profits overseas.
Tariffs increased the supply of American goods but decreased the amount of profits overseas.

Foreign trade partners raised their tariffs (taxes) on American imports, which caused international trade to shrink. This caused more factories to close.
Foreign trade partners raised their tariffs (taxes) on American imports, which caused international trade to shrink. This caused more factories to close.

The Senate was honored for their passage of the tariff, and the economy began to prosper.
The Senate was honored for their passage of the tariff, and the economy began to prosper.

Foreign investors, eager to make more profits in American markets, began to invest heavily in American products, thus boosting our economy.

Answer 1

The response that best reflects the long-lasting effects of the Smoot-Hawley Tariff is:

Foreign trade partners raised their tariffs (taxes) on American imports, which caused international trade to shrink. This caused more factories to close.

This accurately illustrates how the retaliatory tariffs imposed by other countries led to a decrease in international trade and a negative impact on the American economy, contributing to widespread factory closures and unemployment.