#aauth # Tariffs [Perplexity: "How have tariffs historically impacted the economy in the US? What major tariffs have been enacted in the US in the 20th and 21st century?"](https://www.perplexity.ai/search/how-many-women-are-murdered-in-WX7Nt8XTRK6yRGsRWcymDw) ## Historical Rundown: - Tariff of 1816 - The Smoot-Hawley Tariff Act (1930) - raised import duties by ~20% and is widely blamed for exacerbating the Great Depression by triggering global retaliatory tariffs and reducing trade volumes ### 20th Century US Tariffs - **Payne-Aldrich Tariff Act (1909)** - raised tariffs but caused political backlash for failing to lower rates as promised (_lower what rates?_) - **Underwood Tariff (1913)** - Under Woodrow Wilson, average tariff rates were reduced from 40% to 25%, marking a shift toward more free trade - **QUESTION**: _what was the impact of this?_ - **Fordney-McCumber Tariff (1922)** - Increased tariffs to protect post-WWI industries but contributed to global trade tensions - **QUESTION**: _what DOMESTIC impact was there from these tariffs? We need consumer prices, electorate sentiment, etc._ * **Reciprocal Trade Agreements Act (1934)** - Gave the president authority to negotiate tariff reductions with other nations, setting the state for modern trade agreements * **QUESTION:** _Is this still a thing and current standing precedent, or is there something else now?_ * **General Agreement on Tariffs and Trade (GATT) (1947)** - Established international rules for reducing trade barriers, leading to decades of declining tariffs globally * **AND THIS WAS A GOOD THING, ALMOST CERTAINLY - WHY? WHY DID WE WANT THIS? WHY IT GOOD HUH?!?!!?** ### 21st Century - **2002 Steel Tariffs** - Imposed by Dubya to protect steel producers but lifted after international backlash and WTO rulings - **Chinese Tire Tariffs (2009)** - Enhanced under President Obama to protect domestic tire manufactures but criticized for **raising consumer prices** - **Trump Tariffs (2018-2019)** - Imposed $380 billion worth of imports, primarily targetting Chinese goods, under Section 301 of US trade law - Aimed at reducing trade deficit with China but led to higher prices for US consumers and retaliatory tariffs that hurt American exporters - **Biden Administration Continuation (2021-Present)** - Maintained the **Trump-era tariffs** while adding new ones on Chinese goods like semiconductors and electric vehicles in 2024 ## Economic Impact * Trump-Biden tariffs estimated to reduce GDP by 0.2% over time, with job losses of approximately 142,000 full-time positions * Retaliatory measures by other countries have further reduced exports and hurt industries reliant on global markets * Studies consistently show that US consumers bear most of the costs through higher prices ([SOURCE 1](https://taxfoundation.org/research/all/federal/tariffs/)) ([SOURCE 2](https://www.brookings.edu/articles/what-are-tariffs-and-why-are-they-rising/)) Source 1: [(Tax Foundation) Tariff Tracker: Tracking the Economic Impact of the Trump-Biden Tariffs](https://taxfoundation.org/research/all/federal/tariffs/) Source 2: [(Brookings) What are tariffs, and why are they rising?](https://www.brookings.edu/articles/what-are-tariffs-and-why-are-they-rising/) ## Perplexity Conclusion > Historically, tariffs have had mixed effects on the U.S. economy—protecting industries during key periods while sometimes stifling growth through reduced trade and higher costs for consumers and businesses. In modern times, their use as a tool for addressing trade imbalances has sparked debate over their economic efficacy and broader consequences for global commerce. # Points - Before the introduction of income taxes in 1913, tariffs were a primary source of federal revenue - **QUESTION:** *I've seen suggested the tariffs can be used to supplement income tax breaks. Is this even remotely possible? I guess it was in the 19th century and beginning of the 20th century?* -