Economy
The Evolution of Tariffs
April 22, 2025
The United States’ Historical Implementation, Economic Impacts, and Maintaining Emotional Resiliency
What is a tariff, and why are they used?1
A tariff is a tax imposed by a government on goods and services imported from another country. It is typically calculated as a percentage of the value of goods or as a fixed amount per unit. Tariffs can be thought of as an extra cost added to foreign products entering a country.
1 Source: Library of Congress. As of November 2, 1928
While they may feel modern, tariffs are not a new phenomenon and are widely used around the globe. The Tariff Act of 1789 was the first national source of revenue for the U.S., taxing imports between 5-15%. The legislation was encouraged by Alexander Hamilton (the first U.S. Treasury Secretary) to promote U.S. manufacturing, fund debt payments, and reduce foreign reliance.
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The Evolution of Tariffs
The United States’ Historical Implementation, Economic Impacts, and Maintaining Emotional Resiliency
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