The Briefing Room Explainer: A history of US tariffs
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Jun 5, 2025 Dive into the rich history of tariffs in the U.S., starting from the era of President McKinley. Discover how tariffs shaped American industries and government revenues in the late 19th century. Unpack the complex relationship between tariffs and economic growth, challenging the notion that they were the sole path to national prosperity. Explore the political evolution surrounding trade policies and the lasting impact of tariffs, including their relevance in today's economic landscape.
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McKinley Tariff's Dual Purpose
- The McKinley Tariff of 1890 generally raised tariff rates and protected domestic industries while also putting some goods like sugar on the duty-free list.
- Tariffs then were used mainly to protect industries and raise government revenue, making them crucial in 19th-century American politics.
Multiple Factors Drove US Growth
- The U.S. industrial boom after the Civil War coincided with high tariffs but also open capital inflows, mass immigration, western expansion, and technology adoption.
- Tariffs alone did not create wealth; many factors like labor growth and capital played critical roles.
McKinley Tariff's Political Fallout
- The McKinley Tariff became politically unpopular and coincided with a depression in the 1890s which saw unemployment above 10%.
- While not solely caused by the tariff, its association with economic troubles hurt its reputation.