A Brief History of Tariff

Hamiltonian Economics

protective tariff rejected - southern resistance (Democratic-Republicans/Madison) revenue tariff enacted to help fund national debt

War of 1812

need for national defense - industrialization/armaments
British seek to strangle infant U.S. industry with below-cost dumping
first protective tariff passed by national minded Democratic-Republicans (1816)
constant increases (every four years) raises protection (1816-1832)

Tariff of Abominations (1828)

outgoing Q. Adams administration (Federalists/National Republicans)
highest tariff to date stifles most foreign trade
southern Democrats (South Carolina/Calhoun) blame tariff for farm recession
nullification crisis threatens Union

Clay's Compromise Tariffs (1832-1848)

nullification crisis (civil war) avoided by compromise reductions
tariff reduced (every four years) until reduction reaches 1816 level by 1848

Morrill Tariff (1862)

southern secession from congress allows for northern wish-list legislation
highest tariff to date offers war-time protection for Yankee industry

Mills Bill (1887)

Cleveland's first term effort to reduce tariff fails to pass the Senate
makes tariff reform main issue of 1888 election

McKinley Tariff (1890)

Republicans call Harrison victory mandate for higher tariff
Ohio Senator McKinley gains national prominence with steering tariff through Congress

Wilson-Gorman Tariff (1894)

Cleveland (2nd term) seeks tariff reduction/claims McKinley Tariff stifles trade
claims treasury shortfall/shrinking gold reserves cause of Panic of 1893
tariff compromised in congressional debate - little to no real reductions occur
Cleveland disgusted with "protectionist" of bill/allowed to become law without signature

Dingley Tariff (1897)

Republican claim McKinley victory mandate for higher tariff
Dingley Tariff highest ever/completely stifles trade and hurts national treasury

Payne-Aldrich Tariff (1909)

Taft commits political suicide taking on pro-tariff forces in own party
gains no real reductions because of "protectionist" exemptions (Wilson-Gorman Tariff)

Underwood-Simmons Tariff (1913)

progressive victory/Wilsonian era
Wilson gains first real tariff reductions since Clay's compromise

Fordney-McCumber Tariff (1922)

restores high rates - return to normalcy platform

Smoot-Hawley Tariff (1930)

includes agricultural goods to high rates
attempt to protect domestic market for farmers results in European tariff retaliations and lost foreign market