Question

The Smoot Hawley Tariff _____.

successfully improved sales of American goods.
positively influenced foreign trade.
kept all goods from foreign markets out of the United States
negatively affected American industry

Answer 1

The correct answer is it "negatively affected American industry."

The Smoot Hawley Tariff was put into place in 1930. The goal was to increase tariffs (aka taxes on imported goods) in hopes to protect American businesses. However, this ended up hurting American businesses. This is because the amount of goods exported after this law dropped significantly. This drop in American exports means a loss in profit for American businesses, as there markets as to where they can sell their products is severely limited.