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 yet high custom duties.
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 % (1)
- 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 (2)
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 % (3)
- 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 %) (4)
- 1890, Republican senator William McKinley introduces a tariff with an average rate of 48 %! (5)
- 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 % (6) *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
