What was the Hawley-Smoot Act primarily known for?

• A. It raised tariffs, contributing to the Depression
• B. It created Social Security
• C. It built the Hoover Dam
• D. It established the Federal Reserve

Answer: (A)

Raising tariffs to protect domestic industries was the main idea tested. The Hawley-Smoot Tariff Act of 1930 increased duties on thousands of imported goods. While intended to shield American producers, the higher barriers reduced international trade and provoked retaliatory tariffs from other countries. With less trade, export markets for American farmers and manufacturers shrank, unemployment rose, and the Depression worsened. This policy is widely viewed as intensifying the downturn by isolating the U.S. from global commerce. In the broader historical context, it stands in contrast to later moves toward economic cooperation and government intervention during the New Deal. Other options point to different policies or projects from the era, not this tariff act.