The Indicator from Planet Money Trump's tariff role model
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Feb 5, 2025 The podcast explores President Trump's admiration for William McKinley and his tariff policies. It dives into the history of the tinplate industry, assessing the effectiveness of McKinley's tariffs in helping emerging sectors. A fascinating look at how a simple legislative detail impacted the industry reveals the complexities of protective tariffs. The conversation extends to how these historical policies resonate with today’s trade tensions, questioning the balance between protectionism and global cooperation.
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Made in the USA Buttons
- Busy Beaver Button Company sources materials locally, reflecting a commitment to U.S. manufacturing.
- Their tin-plated steel buttons, dating back to the 19th century, highlight the impact of trade policies like the McKinley Tariff.
Infant Industry Argument
- The infant industry argument posits that tariffs protect nascent sectors until they become globally competitive.
- This rationale was used to justify the McKinley Tariff of 1890, which imposed high tariffs on imported tinplate.
McKinley Tariff's True Impact
- Economist Doug Irwin's analysis reveals that the U.S. tinplate industry likely would have grown even without the McKinley Tariff.
- High tariffs on iron and steel, key inputs for tinplate, delayed the industry's growth, offsetting tariff benefits.