Tariff Act Of 1789

We all know the universal knowledge that one cannot receive something without giving something in return. We, being normal everyday American citizens, trade in various ways in our everyday, normal lives. To trade, in the simplest of terms, is buying or selling goods/services. Trading money for food, or our time for money are both very common ways that we trade. Now, take the small scale of trading and enlarge it to trading with other countries. The United States trades frequently with other countries in order to keep our economy running. Seeing as a lot of the resources we depend on today can be found cheaper and are easier to obtain in other countries, its only natural that both small and large companies find trading over seas more convention. Trading was always a major factor in our country, ever since the beginning; therefore, things like the Federal Trade Policy were needed.
The trade policy that we know today actually started in 1789, only a year after the constitution took effect.

The U.S Congress enacted the Tariff Act of 1789, which can also be known as the first major U.S tariff. To explain a little further, tariff acts are connected to federal trade policy by not only regulation, but they are one of the main factors of a way that the federal government controls taxes. This Tariff Act of 1789 was not only designed to raise revenues by placing a tax on the import of foreign goods, but encourage domestic production in business in the United States. In the same year, the Tonnage Act was also passed; this act placed a 50 cents tax on foreign ships entering American ports, 30 cents, on American built but foreign owned ships and 6 cents, on American ships. These two acts were the first two main tariffs in the United

States.
Later in 1793, Thomas Jefferson issued the “Report of the Secretary of State on the Privileges and Restrictions on the Commerce of the United States in Foreign Countries.” This limited the imports and exports that the United States was involved in with other foreign countries at that time. Federal Trade with countries like Spain, France, Great Britain and the United Netherlands were ultimately lowered. After this act was issued, in 1807 the U.S began wishy-washy trade sanctions with Great Britain and France until the violence outbreak with Great Britain in 1812, which was when the War of 1812 began, lasting until 1814.
After this, the tariff of 1816, also known as the Dallas Tariff was passed.

This tariff was the first real protectionist measure that the United States had taken, raising the taxes to 20-25% on all foreign goods. After the war of 1812 the United States had taken a hard hit. In 1824, the federal government passed another protectionist tariff, whose purpose was to protect American industry from cheap British products like wool, iron, and agriculture goods. From the beginning of the United States of America frequent tariffs were passed in order to regulate and control the taxation of products being both imported an exported over seas with other countries. Many of the taxes, like the Tariff of 1824 were used in order to protect the American economy. By regulating the taxes of traded goods, the United States was able to keep the import and export of products balanced most of the

time.
In 1828, congress passed a tariff, which was later renamed by the southern states as the “Tariff of Abominations,” it was called this because of the backlash that it had on both Britain and the southern states.

This tariff was first created to protect northern industries and factories but ultimately in the end made the south pay higher taxes on products that they did not produce. Later, in 1832 Congress began to balance back tariffs; with additional reductions that were enacted the following year with the “Compromise Tariff” which was ultimately created to fix the problem that the “Tariff of Abominations” and “Tariff of 1832” had created. In 1842, rates had again risen from the “Black Tariff” which was originally created to fix previous problems but by 1846, the rates were already decreasing, and ultimately lowered in 1857. Following the 1857 act, tariffs averaged around 20 percent. The outbreak of the civil war was soon to follow and because of this, a series of “War Tariffs” would be passed that would remain for generations to follow. After the “War Tariffs” were passed a few years later in 1914 the Federal Trade commission act came to pass and was signed by Woodrow Wilson, this acts soul purpose was to “outlaw unfair methods of competition” as well as “unfair acts or practices that affect buying or selling of products.” Today, the Federal Trade Commission is a United States regulatory agency that was designed to monitor and prevent deceptive, unfair and anti-competitive

business practices in the United States. The FTC currently still works to advance government policies that protect both consumers and promote competition.