Question

tariffs to protect domestic industries do not always work as expected. a classic example of unintended consequences is the smoot - hawley tariff. read the following passage. then follow the instructions.
the smoot - hawley tariff was passed in 1930 with the goal of helping u.s. businesses and farmers that were struggling during the great depression. it raised already - high tariffs on agricultural and manufacturing imports by an average of 20%. other countries were also suffering from the effects of the great depression. they retaliated, or fought back, by imposing their own tariffs on u.s. imports.
economists estimate that smoot - hawley significantly contributed to a 60% decline in global trade from 1929 to 1934, worsening the effects of the great depression. in 1934, president franklin d. roosevelt reduced the tariffs and negotiated agreements with other countries to reopen trade.
the smoot - hawley tariff tried to help u.s. businesses by raising the price of imported goods. which statement best summarizes the unintended consequences of the smoot - hawley tariff?
it ended up helping foreign economies as well as the domestic economy, since u.s. consumers had to pay more for foreign goods.
it caused other countries to raise the price of u.s. goods, making it hard for u.s. businesses to sell their goods overseas.
it caused u.s. farmers to grow more crops to meet demand, but overproduction meant they still couldnt make a profit.

Explanation:

The passage states that other countries retaliated by imposing their own tariffs on U.S. imports. This retaliation would make U.S. goods more expensive in other countries, making it hard for U.S. businesses to sell overseas. The first option is incorrect as the tariff worsened the Great Depression, not helped economies. The third option is not supported by the passage which focuses on trade decline due to tariffs, not overproduction by farmers.

Answer:

It caused other countries to raise the price of U.S. goods, making it hard for U.S. businesses to sell their goods overseas.