Customs and Border Protection Border Patrol Agent (CBP BPA) Practice Exam 2026 - Free Border Patrol Practice Questions and Study Guide

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What law establishes the framework for tariffs in trade?

Trade Act of 1974

Tariff Act of 1930

The Tariff Act of 1930, often referred to as the Smoot-Hawley Tariff Act, is the law that establishes the framework for tariffs in trade. This Act was pivotal in defining the processes and regulations for imposing tariffs on imported goods, aimed at protecting domestic industries by making foreign products more expensive. It set a precedent for how tariffs would be calculated and enforced, influencing future trade policies and legislation.

Additionally, while the other options mentioned may address trade practices and regulations, they do not specifically lay the foundational framework for tariffs in the way the Tariff Act of 1930 does. The Trade Act of 1974, for instance, focuses on trade adjustment assistance and trade negotiations, while the Customs Modernization Act pertains more to modernizing customs procedures and enhancing the efficiency of the Customs service. The Free Trade Agreement Act involves agreements that can reduce or eliminate tariffs but does not establish the foundational tariff framework itself.

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Customs Modernization Act

Free Trade Agreement Act

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