So, I’m no historian and like ever other reader here, in all likelihood, have lived solely in an era of low tariffs. It was therefore of interest to me to learn a bit about the history of tariffs in the US. Yes, I did realize tariffs had been a point of contention between the Democrats and Republicans in the Gilded Age, but was admittedly poorly informed about the particulars. So here’s something I had not realized: For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports.
A bit more context from the Wikipedia entry:
“Tariffs in United States history have played important roles in trade policy, political debates and the nation’s economic history. The main goal of the tariff was money to pay the federal budget.[citation needed] Controversy arose over whether manufacturing interests were favored and consumer interests hurt by high tariffs. The 1st United States Congress, wanting a straightforward tax that was not too onerous and easy to collect, passed the Tariff Act of 1789. Treasury agents collected the tariff before goods could be landed, and what became the Coast Guard prevented smuggling. Tariffs were the largest (approaching 95% at times) source of federal revenue until the Federal income tax began after 1913. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports. There are no tariffs for imports or shipments from other states. Since the 1940s, foreign trade policies have focused more on reciprocal tariffs and low tariff rates rather than using tariffs as a significant source of Federal tax revenue. The goal of using higher tariffs to promote industrialization was urged by the first Secretary of the Treasury, Alexander Hamilton, and after him the Whig Party. They generally failed because Jeffersonian and Jacksonian Democrats said the tariff should be only high enough to pay the government’s bills; otherwise, it would hurt the consumers. The Republicans, however, made high tariffs the centerpiece of their economic policy beginning in 1861, and as late as 1930. Since 1930, tariffs have not been a major political issue.”
It’s interesting to me that the Republicans, who were the liberal party when they first arose, favored a high tariff, and if Trump has his way, they will once more favor such. Maybe this just means “liberal” and “conservative” don’t mean a whole lot.
So yeah, what Trump is talking about with respect to Mexico is an atavistic throwback, perhaps, but he’ll have a constituency.
