What action did the United States take in 1894 that affected Cuba's economy?

In 1894, the United States imposed a tariff on sugar, specifically through the McKinley Tariff, which significantly impacted Cuba's economy. Prior to this tariff, Cuba was benefiting from a favorable trade relationship with the United States, as the market for its sugar production was robust due to the absence of tariffs. The imposition of the tariff increased the cost of Cuban sugar in the U.S. market, making it less competitive compared to sugar from other countries that were not subject to those tariffs.

This economic pressure contributed to increased instability in Cuba and intensified calls for independence from Spanish control, setting the stage for further U.S. involvement in Cuban affairs. The tariff essentially strained the already struggling Cuban economy, leading to greater discontent among its population towards both Spanish colonial rule and the economic policies of the United States.

Other choices such as withdrawing investments, establishing a blockade, or signing a trade agreement with Spain did not occur in 1894 and would not have had the direct economic effects that the tariff did. Instead, the tariff was a clear action that had immediate ramifications for Cuba's economic situation, making it the correct answer.