Question

Smoot Hawley Tariff
• Raised tariff rates on thousands of items
• Enacted into law in June 1930
• U.S. imports from Europe declined by $944 million between 1929 and 1932
• U.S. exports to Europe declined by $1557 million between 1929 and 1932
Which statement best explains a reason for supporting protectionist policies such as the Smoot Hawley Tariff in 1930?

Responses

The use of tariffs helps to increase domestic sales of foreign-produced goods.

The use of tariffs helps to increase domestic sales of foreign-produced goods.

The use of tariffs helps to stimulate international trade worldwide.

The use of tariffs helps to stimulate international trade worldwide.

Tariffs can minimize foreign competition for struggling domestic industries.

Tariffs can minimize foreign competition for struggling domestic industries.

Tariffs generally open up new markets for U.S.-produced goods.

Tariffs generally open up new markets for U.S.-produced goods.

Answer 1

The statement that best explains a reason for supporting protectionist policies such as the Smoot-Hawley Tariff in 1930 is:

**Tariffs can minimize foreign competition for struggling domestic industries.**

This response highlights the protective nature of tariffs, which were implemented during a time of economic distress to shield domestic industries from foreign competition and to promote local production.