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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.

Respuesta :

 Tariffs can be useful to help boost the demand of domestically produced goods. In the short-term, this approach can be good for the nation implementing the tariff because it can improve its production. However, this tactic can negatively impact other countries as the demand for their exports decline, causing a decline in their GDP. As seen with the Hawley-Smoot Tariff Act, countries may retaliate with tariffs of their own, causing global economic issues.

Hawley-Smoot Tariff Act provided benefits of increased demand for the goods that were produced within the domestic boundaries of the nation. However, it would be dangerous for the demand for domestic goods externally or internationally.

Hawley-Smoot Tariff Act was introduced in the year 1930 as a trade policy to protect the internal manufacturers, agricultural, and businesses.

  • This act imposed certain taxes on goods that are imported into the US. Thus, proved beneficial in terms of enhancing the economic internal demand and protecting industries/farmers of the US against low-cost imported goods.
  • The act was also regarded as a bad move as it lead to the decline of overall exports of the nation due to retaliation of other countries against the USS.

Learn more about Hawley-Smoot Tariff Act here:

https://brainly.com/question/12227985?referrer=searchResults

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