United States Tariff History
From Dickinson College Wiki
1800's
During the turn of the century, agriculture dominated the US economy. The US experienced low rates on imported goods (5-10 %) yet high custom duties (80-90 %).
War of 1812
- The war caused poor relations between the United States, Great Britain and France
- In response, the US federal government implemented a stuff excise tax to compensate for debt
Tariff of 1816 The Madison Administration
- The US experienced a sole dependence on struggling internalized markets
- Great Britain dumped cheap goods which were smuggled from New England factories during the war
- These goods were sold cheaply in the United States, which hurt the US markets even more, especially New England-based industries
- In response, the US government decided to place a hefty tariff on imported goods to protect US markets
- The average tax rate from the tariff was 20 %
- The Tariff of 1816 set a precedent for future tariffs
What About the South?
- The south opposed the Tariff of 1816
- Their economy depended on exporting cotton to nations such as Great Britain
- Increasing average tax rates on tariffs led to less cotton exports
- 1824, tariff rates increase on average to 30 % which discourages US imports/exports
The Tariff of 1832
- Tariff rates continued to increase against the south's displeasure
- Southern states such as South Carolina nullify the tariffs and threaten to secede from the union
- Tension in Charleston, Andrew Jackson
Tariff of 1857 & Panic of 1857
- The Tariff of 1857 was a response to the Panic of 1857
- Factors leading to the Panic of 1857
*Britain's decision to remove funds from American banks
*Astronomical build-up of manufacturing goods in US factories, lay-offs
*Unsuccessful attempts to building the transcontinental railroad system
- The Tariff of 1857 was Pro-south, reflected a downward tariff reform
- The fed believes that encouraging imports & exports can jump-start our economy
- Average tariff rates fall from 30 % to 20 %
- Robert Walker, Mississippi(D) played a big role in the tariff
- Friendly trade relations between the US and Great Britain were renewed
- As a result, more revenue is generated for the treasury
Tariffs during the Civil War
- 1861, Justin Morrill introduced the Morrill Tariff
- takes a heavy pro-north perspective
- average tariff rate reaches as high as 47 percent
- Due to unjustifiable misrepresentation, seven southern states secede from the union
- believed that the northern states consumed the bulk of revenue generated from tariffs
Reconstruction Era
- Grant Administration, sharp decline in average tariff rates (10 %)
- 1890, Republican senator William McKinley introduces a tariff with an average rate of 48 %!
- Tariff rates continued to fluctuate into the turn of the century
- The conflict of protectionism continues
Pre-World War I Era
- Fluctuations of tariff rates continue with following tariffs
*1897, Dingley Tariff. McKinley administration, pro-protectionism, rates raise to 57 %
*1909, Payne-Aldrich Tariff. Taft administration, anti-protectionism, rates drop
*1913, Underwood-Simmons Tariff. Wilson administration, anti-protectionism, rates drop
- Anti-protectionists critique downward revision tariffs by saying they contibuted to World War I, false accusation
