Question

Based on what you know about the Hawley-Smoot Tariff Act, how can tariffs be both useful and dangerous tools? Give your answer in a short paragraph.

Answer 1

The Hawley-Smoot Tariff Act of 1930 raised tariffs on many imported goods, but then countries that traded with the United States raised their tariffs in retaliation leading to increased prices for US consumers. Tariffs can be useful economic tools that boost the sales of a domestic product, but if other countries start to retaliate it can backfire by raising prices and causing economic problems.

Answer 2

• Hawley-Smoot Tariff Act was initiated to raise the import duties so that the interest of the farmers and businessmen of America can be safeguarded.
• Tariffs can be useful as it creates a rise in domestic sales but it becomes dangerous when other countries increase the tariffs.

What are tariffs?

Tariffs are taxes that a government of a country put on either imports or exports.

• The Act of Hawley-Smoot Tariff was passed in the year 1930 by Wills Hawley for protecting the American peasants and businessmen by increasing the tariffs on imported goods.

• The implementation of tariffs leads to growth in domestic sales of a product but when the foreign countries create a rise in the tariffs, then it will be disastrous for the country the US which resulted in economic problems.

Therefore, the passing of the Hawley-Smoot Tariff Act was to enhance the import duties on the goods.

Learn more about the Hawley-Smoot Tariff Act in the related link:

https://brainly.com/question/14386417

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