The Underwood Tariff Act was enacted in 1913 and aimed to reduce tariffs on imported goods in the United States. This legislation marked a significant shift in trade policy, moving away from high protective tariffs that had been in place for decades. The act was designed to lower consumer prices and promote competition by allowing more foreign goods into the market. Additionally, the Underwood Tariff Act included a provision for a graduated income tax, which was made possible by the ratification of the 16th Amendment. This tax aimed to generate revenue for the federal government while reducing reliance on tariffs, thus addressing economic inequality and supporting public services.