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
