What impact did the U.S. make on Cuba's sugar industry in 1894?

In 1894, the United States significantly impacted Cuba's sugar industry primarily through the implementation of tariffs and economic policies. The McKinley Tariff of 1890 raised sugar import duties, which heavily affected Cuban sugar exports to the United States. As a result, the tariffs made Cuban sugar less competitive against domestic sugar and cheaper sugar from other countries. This led to a substantial drop in the income of Cuban sugar producers, ultimately plunging the Cuban economy into an economic crisis.

The reliance on sugar as a cash crop meant that when the U.S. imposed these tariffs, it created a ripple effect throughout the economy, affecting not just cane farmers but also laborers and related industries. Consequently, the drop in sugar prices due to U.S. policies led to financial distress among Cuban sugar producers, showcasing how these external economic pressures catalyzed a severe economic downturn in Cuba during that period. This context aligns with the correct answer, highlighting the detrimental effects that U.S. actions had on Cuba's economy at the time.