The Smoot-Hawley Tariff Act was supposed to protect America’s businesses by raising taxes on imported goods. How did the tariff affect America? American businesses grew. Foreign countries retaliated and hurt American businesses. Americans responded by buying more foreign goods. Foreign countries were more willing to do business in America. What was the purpose of Hoover’s Reconstruction Finance Corporation? to raise taxes on foreign imports to open soup kitchens and bread lines to provide loans and resources to businesses to give direct aid to Americans.