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The Surprising History Of Tariffs And Their Role In U.S. Economic Policy

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Since the 1930s, the U.S. has moved away from protectionism in favor of trade liberalization. Agreements like the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), have dramatically lowered global tariffs. Today, roughly 70% of all products enter the U.S. duty-free.
The article from Forbes discusses the historical significance and evolving role of tariffs in U.S. economic policy. It traces tariffs back to the nation's founding, highlighting their use as a primary source of federal revenue before the introduction of income tax. Initially, tariffs were not only a means to fund government operations but also served to protect nascent American industries from foreign competition, notably through the Tariff of 1816. Over time, tariffs have been at the center of economic debates, with periods of high tariffs like the Smoot-Hawley Tariff of 1930 exacerbating global economic downturns, leading to a shift towards lower tariffs post-World War II under frameworks like the General Agreement on Tariffs and Trade (GATT) and later the World Trade Organization (WTO). The article notes a resurgence in tariff discussions in recent years, particularly under the Trump administration, which used tariffs as leverage in trade negotiations, reflecting a return to protectionist policies. This historical overview underscores the dual nature of tariffs as both economic tools and political instruments, influencing domestic industries, international relations, and economic strategies.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/greatspeculations/2025/02/18/the-surprising-history-of-tariffs-and-their-role-in-us-economic-policy/ ]