USA HISTORY

Detailed explanation-1: -The Fordney–McCumber Tariff of 1922 was a law that raised American tariffs on many imported goods to protect factories and farms. The US Congress displayed a pro-business attitude in passing the tariff and in promoting foreign trade by providing huge loans to Europe. That, in turn, bought more US goods.

Detailed explanation-2: -The Fordney-McCumber Tariff Act raised tariffs above the level set in 1913; it also authorized the president to raise or lower a given tariff rate by 50% in order to even out foreign and domestic production costs.

Detailed explanation-3: -The Smoot-Hawley tariff bill finally passed in June 1930; it raised rates on over 20, 000 items, but as a whole, pleased no one. Over 1000 economists signed an open letter to President Hoover, begging him to veto the bill.

Detailed explanation-4: -The Fordney-McCumber Tariff of 1922 was supposed to stimulate recovery from a postwar economic downturn. In reality, its extended duties on agricultural imports actually cost American farmers dearly in already depressed European markets.

Detailed explanation-5: -The Smoot-Hawley Tariff Act, enacted in June 1930, added about 20% to the United States’ already high import duties on foreign agricultural products and manufactured goods. The Fordney-McCumber Act of 1922 previously raised the average import tax on foreign goods to about 40%.