"The imposition of tariffs has long intended to aid American industry extending back for more than 300 years, with mixed results. The Tariff Act of 1789 was the first tariff levied by the U.S. government in an effort to pay off debts incurred during the Revolutionary War. Because there was no income tax at that time, taxing imports was the main way the new government could generate revenue. Additionally, there was a belief that U.S. manufacturing should be a larger part of the economy. The United States government felt that if they taxed textiles and iron from overseas, it would give U.S.-made textiles and iron products a price advantage over their foreign competitors."

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"The imposition of tariffs has long intended to aid American industry extending back for more than 300 years, with mixed results. The Tariff Act of 1789 was the first tariff levied by the U.S. government in an effort to pay off debts incurred during the Revolutionary War. Because there was no income tax at that time, taxing imports was the main way the new government could generate revenue. Additionally, there was a belief that U.S. manufacturing should be a larger part of the economy. The United States government felt that if they taxed textiles and iron from overseas, it would give U.S.-made textiles and iron products a price advantage over their foreign competitors."

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Quote

Source

U.S. Bureau of Labor Statistics

Source URL

https://www.bls.gov/opub/btn/volume-9/the-effects-of-tarifff-rates-on-the-u-s-economy-what-the-producer-price-index-tells-us.htm

Referenced by

Higher tariffs on Chinese goods could encourage domestic production in the U.S.

US Politics

Claim