Major Tariff Periods

1. Mercantilist Tariff Period (1500s – late 1700s)

Key idea: Trade = national power. Governments imposed high tariffs to protect domestic producers and accumulate gold/silver.
Features:

• Tariffs used to protect infant industries and generate government revenue.
• Colonial powers (Britain, Spain, France, Portugal) restricted colonies from trading with others.
• Example: Britain’s Navigation Acts (1651–1849) — required colonial trade to use English ships.
• Trade seen as zero-sum — one country’s gain was another’s loss.

2. Early Industrial Protectionism (late 1700s – mid 1800s)

Key idea: Emerging nations protected local industry from stronger economies.
Examples:

• U.S. Tariff of 1789 (the first U.S. tariff) for revenue and protection.
• Alexander Hamilton’s “Report on Manufactures” (1791) – argued for protective tariffs to develop industry.
• Continental Europe used tariffs to shield early industrial sectors.
• Britain moved gradually toward free trade, influenced by classical economists (Smith, Ricardo).

3. Free Trade Era (1846 – 1914)

Key idea: Liberalization and expansion of global trade under British leadership.
Milestones:

• Repeal of the Corn Laws (1846) – ended protection for British grain farmers.
• Cobden–Chevalier Treaty (1860) between Britain and France reduced tariffs; many similar treaties followed across Europe.
• Rise of the gold standard and free flow of goods, capital, and labor.
• Colonial trade networks expanded; global trade tripled by 1913.
• Tariffs were generally moderate to low, though the U.S. stayed relatively protectionist.

4. Interwar Protectionist Period (1918 – 1945)

Key idea: Trade collapse and economic nationalism.
Context:

• World War I disrupted global trade.
• The Great Depression worsened protectionism.
  Key events:
• Smoot–Hawley Tariff Act (1930, U.S.) — raised tariffs on 20,000 goods; triggered global retaliation and trade collapse.
• Imperial preference systems (e.g., British Commonwealth, French Empire).
• Global trade volume fell ~65% between 1929 and 1933.

5. Post-WWII Liberalization (1945 – 1970s)

Key idea: Rebuilding global trade through cooperation and reduced tariffs.
Institutions & milestones:

• General Agreement on Tariffs and Trade (GATT, 1947) — multilateral framework to lower tariffs.
• Successive “rounds” of GATT negotiations:
  • Geneva (1947) – 45,000 tariff concessions.
  • Annecy (1949), Torquay (1951), Dillon (1960-61), Kennedy (1964-67), Tokyo (1973-79).
• Average industrial tariffs among developed countries dropped from ~40% (1947) to ~10% (1970s).

6. Globalization & WTO Era (1980s – 2008)

Key idea: Rapid globalization, trade liberalization, and regional integration.
Highlights:

• Uruguay Round (1986-1994) – created the World Trade Organization (WTO) in 1995.
• Tariffs cut further; non-tariff barriers addressed (services, IP, agriculture).
• Regional trade blocs:
  • European Union (EU) single market.
  • NAFTA (1994) – U.S., Canada, Mexico.
  • ASEAN Free Trade Area (1992).
• Offshoring and global supply chains expanded.

7. Protectionist & Strategic Trade Period (2008 – Present)

Key idea: Backlash against globalization, rise of trade wars, and economic nationalism.
Trends:

• 2008 Global Financial Crisis led to protectionist measures (subsidies, import restrictions).
• U.S.–China trade war (2018–present): tariffs on hundreds of billions in goods; “decoupling” of supply chains.
• COVID-19 pandemic (2020–2022) – exposed vulnerabilities in global supply chains; more reshoring/“friend-shoring.”
• Green industrial policy era: subsidies, tariffs, and local content rules for EVs, chips, clean energy tech.
• New focus on “economic security” — not just free trade.

8. Emerging Era (2025 – Future): “Geo-economic Realignment”

Ongoing dynamics:

• Selective liberalization (within allies) + protectionism (against rivals).
• Regional trade pacts (CPTPP, RCEP, AfCFTA) balancing U.S.–China rivalry.
• Strategic tariffs and export controls (e.g., semiconductors, critical minerals, rare earths).
• Goal: secure, sustainable, and politically aligned trade networks rather than fully open global markets.

 Summary Timeline