In 1930, President Hoover signed the Hawley-Smoot Tariff into law, raising tariff rates to an all-time high. Why were many economists opposed to this action? The tariff allowed Europeat nations to benefit from the economic situation in America. The tariff led to higher prices and worsened the depression. The tariff hurt manufacturers by increasing competition for resources. The tariff helped farmers but hurt the United States' trade relationship with European nations.