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