Question

What act attempted to raise revenues by increasing on agricultural and industrial products, but nations importing goods to the United States fought back lifting duties on imports leading to reduced demand for American goods

Answer 1

The Smoot-Hawley Tariff Act of 1930 aimed to protect American industries by imposing high tariffs on imported goods, but it led to retaliatory tariffs from other countries, resulting in a decrease in global trade and exacerbating the economic difficulties of the Great Depression.

Step-by-step explanation:

The act raised the tariff rates significantly on more than twenty thousand types of imported goods, which led other countries to retaliate by increasing their tariffs on American exports.

As a consequence, demand for American goods abroad diminished, leading to reduced sales and worsening the economic situation during the Great Depression.

The intention behind the Smoot-Hawley Tariff was to provide a boost to the domestic economy by limiting foreign imports, under the belief that this would protect and promote American jobs and industries.

However, the results were largely detrimental, as it ushered in a period of international trade reduction and economic hardship. Economists had anticipated that such high tariffs could lead to a trade war, and unfortunately, this is precisely what unfolded, severely impacting both the agricultural and industrial sectors of the US economy.