Which of the following was a result of the passage of the Hawley-Smoot Tariff Act?

• A. An immediate recovery of the U.S. economy from the Great Depression
• B. A significant decrease in international trade due to retaliatory tariffs
• C. Increased cooperation between the United States and European nations
• D. A reduction in tariff rates on imported goods

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the Hawley-Smoot Tariff Act, which was passed in 1930 during the early years of the Great Depression. It was designed to protect U.S. industries by raising tariffs on imported goods.
2. Step 2: Recognize that the Act led to higher tariffs, which caused other countries to retaliate by imposing their own tariffs on U.S. exports. This retaliation reduced international trade significantly.
3. Step 3: Analyze the economic impact: instead of helping the U.S. economy recover quickly, the tariff worsened the global economic situation by decreasing trade volumes and increasing tensions between countries.
4. Step 4: Eliminate incorrect options by recalling that the Act did not lead to immediate economic recovery, increased cooperation, or tariff reductions; rather, it increased tariffs and trade barriers.
5. Step 5: Conclude that the correct result of the Hawley-Smoot Tariff Act was a significant decrease in international trade due to retaliatory tariffs imposed by other countries.