Question

Identify two effects of the Smoot-Hawley Tariff Act of 1930. It made trade easier between America and Europe. It lowered the cost of foreign imports. It made the cost of selling products overseas too expensive. It made the cost of buying products overseas too expensive.

Answer 1

The correct answers are
1) It made the cost of selling products overseas too expensive.
2) It made the cost of buying products overseas too expensive.

The Smoot Hawley Tariff was a tax put on imported goods. This means that goods coming into the US from another country would cost more money. In response to this act, other countries implemented their own tariffs on American goods. This resulted in multiple negative effects for the American economy, as the amount they traded with other countries decreased along with increasing the price of everyday goods.