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A HISTORY OF U.S. TARIFFS
- NH Muckraker
- Jun 2
- 3 min read
Updated: Jun 3
This historical overview of tariffs in the United States is a rich and informative narrative tracing their evolution from colonial times through modern global trade agreements.
Summary by Periods
Colonial and Early Republic (Pre-1800s)
Tariffs were an easy form of tax collection.
Smuggling was rampant due to widespread evasion of British tariffs.
Rhode Island was a hub of smuggling and opposed a strong federal government.
Alexander Hamilton introduced the first U.S. tariff system mainly for revenue generation, not protection.
Industrial Revolution (1800–1860s)
Tariffs shifted to include protectionist motives with the rise of New England’s textile industry.
The War of 1812 interrupted trade, boosting domestic manufacturing.
The Tariff of Abominations (1828) highlighted growing North-South sectional tensions.
South Carolina’s attempt to nullify federal tariffs led to the Nullification Crisis, diffused by the Compromise Tariff of 1833.
Civil War and Gilded Age (1860s–1900)
The Civil War led to a spike in tariffs and new taxes to fund the war effort.
High tariffs remained post-war, benefiting Northern industry.
Rising inequality from regressive consumption taxes (like tariffs) spurred calls for an income tax, eventually struck down in 1895.
By the end of the century, U.S. manufacturing had matured, and arguments for protection weakened.
Progressive Era and Great Depression (1900–1930s)
Tariffs declined until the Smoot-Hawley Tariff (1930), which raised duties on 20,000 items.
Smoot-Hawley is widely seen as exacerbating the Great Depression by shrinking world trade.
Post–World War II to Present
The U.S. spearheaded GATT and later the WTO to reduce trade barriers.
Global trade exploded, correlating with a dramatic decline in global poverty.
The U.S. maintained lower tariffs to help rebuild allies—many of these unequal arrangements still persist.
Recent administrations, especially Trump’s, have challenged this status quo with tariffs aimed at balancing trade relationships, particularly with China and the EU.
The Marshall Plan
"The Economic Recovery Act authorized $13.3 billion (over $150 billion in today’s dollars) over four years.
The money was used to provide food, fuel, raw materials, and machinery— resources needed to rebuild infrastructure, restart industry, and restore economic stability.
Aid was not contingent on repayment, and was offered tariff-free, further encouraging trade and integration."
Key Themes and Insights
Tariffs as a tool for revenue vs. tariffs as economic protection.
The role of sectional politics (e.g., North vs. South) in tariff policy.
The economic consequences of tariffs—both positive (early industrial growth) and negative (Great Depression).
The importance of international cooperation (GATT/WTO) in expanding trade and reducing global poverty.
What technological innovations (e.g., shipping containers) complemented trade liberalization.
The unfinished business of trade fairness, as seen in long-standing asymmetric tariffs and value-added tax practices.
Implications for Today
The historical record shows tariffs can be effective in specific contexts (e.g., early U.S. industry, post-Civil War debt), but often at hidden costs to consumers and global trade stability.
Modern trade tensions—like those between the U.S., China, and the EU—echo old debates but play out in a vastly more interconnected global economy.
"President Trump wants to level this playing field. To do so, he has started what some are calling a trade war and others are calling the greatest example of “the art of the deal” in history. We will have to wait and see how it plays out."
I call the game MAGA and Trump will win.
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