Explain the impact the Smooth Hawley Tariff had on the Great Depression.(2 points) Responses The United States agreed to lower its tariffs, but only its agricultural exports. The United States agreed to lower its tariffs, but only its agricultural exports. Countries responded by raising tariffs on American goods, further hurting the American economy. Countries responded by raising tariffs on American goods, further hurting the American economy. Unemployment dropped to an unprecedented 25 percent decreasing overall production. Unemployment dropped to an unprecedented 25 percent decreasing overall production. Hoover campaigned on the tariff's success and swept to victory in the 1932 election.

Answer 1

The Smoot-Hawley Tariff Act of 1930 had significant and detrimental impacts on the U.S. economy during the Great Depression.

1. Retaliatory Tariffs: The United States imposed high tariffs on imported goods in an effort to protect domestic industries. In retaliation, other countries raised their own tariffs on American exports, leading to a steep decline in international trade. This created a vicious cycle that further harmed the U.S. economy by limiting market access for American goods and exacerbating the economic downturn.

2. Unemployment and Production: As trade collapsed and businesses faced reduced demand, unemployment soared to unprecedented levels, reaching around 25 percent. This decrease in employment and income led to a significant decline in overall production, contributing to the economic strife experienced during the Great Depression.

In summary, the Smoot-Hawley Tariff exacerbated the Great Depression by prompting retaliatory tariffs from other nations and significantly increasing unemployment and decreasing industrial production in the United States.