The Smoot-Hawley Tariff Act of 1930 is notorious for which of the following reasons?

A) It spawned a global trade war.
B) It triggered the Great Depression.
C) It favored imports over domestic producers.
D) It is a classic example of the dumping argument.

Smoot-Hawley Tariff Act

Legislation passed in 1930 that established very high tariffs. Its objective was to reduce imports and stimulate the domestic economy, but it resulted only in retaliatory tariffs by other nations.

Global Trade War

A situation where countries impose tariffs or other trade barriers on each other in response to trade disputes, leading to reduced international trade.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, leading to high unemployment and significant economic distress.