What are tariffs, and how do they work?

1. Read

1. 1In 1930, as the Great Depression ravaged the United States, President Herbert Hoover made a bold economic decision.
2. 2With the goal of supporting American farmers and manufacturers, he approved a sweeping 20% tax
3. 3on all imported agricultural and industrial goods. He believed making foreign goods more expensive
4. 4would encourage consumers to buy domestic, thus funneling cash into American businesses and creating more jobs.
5. 5But Hoover's plan completely backfired. Other countries retaliated by taxing American goods,

2. Fill in the blanks

1. 1In 1930, as the Great   ravaged the United States, President Herbert Hoover made a bold economic decision.
2. 2would encourage consumers to buy domestic, thus funneling cash into American   and creating more jobs.
3. 3In the end, this policy led   prices to spike