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====Early History of Tariffs====Some of the earliest tariffs are recorded from texts in the 3rd and 2nd millennium BCE. The Old Assyrian trade colony in Anatolia, in the ancient city of Kanesh, was a thriving city that received tin metals and wool and traded precious metals to ancient Assyria in modern day northern Iraq. The trade was taxed by local rulers in Anatolia and along the route of trade in Syria. Transit costs and Assyrian merchants living in Kanesh would have to pay taxes in conducting their trade enterprise that appears to be mutually beneficial.

Some of the earliest tariffs are recorded from texts in the 3rd and 2nd millennium BCE. The Old Assyrian trade colony in Anatolia, in the ancient city of Kanesh, was a thriving city that received tin metals and wool and traded precious metals to ancient Assyria in modern day northern Iraq. The trade was taxed by local rulers in Anatolia and along the route of trade in Syria. Transit costs and Assyrian merchants living in Kanesh would have to pay taxes in conducting their trade enterprise that appears to be mutually beneficial. Despite the tariffs, trades traders would make large profits, often doubling their investment with a caravan of goods sent between Assyria and Kanesh. The trade thrived for centuries. Similar to today, merchants wanted to avoid paying tariffs, which sometimes meant taking different routes to conducting trade, but inevitably tariffs were considered part of the cost of business and were priced in the commodities traded(Figure 1).<ref>For more on the Old Assyrian trade colony, see: Barjamovic, Gojko. 2011. <i>A Historical Geography of Anatolia in the Old Assyrian Colony Period</i>. CNI Publications 38. Copenhagen: Carsten Niebuhr Institute of Near Eastern Studies, University of Copenhagen : Museum Tusculanum Press.</ref>

The Roman Empire had a series of tariffs in different parts of the empire, although generally there was no unified system. There were internal tariffs, which governed goods that moved within the empire. These goods were taxed at rates ranging between 1-5 percent. Foreign goods could be taxed at rates ranging between 12-25 percent. This often made luxury goods well beyond the means of average Romans. Goods from the East were particularly taxed at high rates. Silk from China, for instance, was in high demand but could mostly only be afforded by the upper elites.<ref>For more on Roman Empire trade, tariffs, and taxes, see: Temin, Peter. 2017. <i>The Roman Market Economy. The Princeton Economic History of the Western World</i>. Princeton, NJ: Princeton Univ. Press. </ref>

In the Medieval period, around the 13th century, we begin to see more regulation of tariff costs for specific commodities. Wool, for instance, was heavily regulated in England in the 13th and 14th centuries. Tariffs were relatively high as wool was seen as an important pillar of the English Medieval economy and protecting it was a chief goal. Other commodities, such as skins and leather, lead, tin, butter, cheese, lard and grease, were levied as well. However, rather than a specified rate, often the taxes were based on the container of the commodity of trade. For instance, a sack of wool was levied at roughly 6 shillings and 8 pence. This could allow merchants, of course, to cheat more easily by switching commodities in sacks, which were taxed at variable rates, or containers were smuggled without a tax. Ports and trade routes were often levied to directly benefit the crown. This tradition in England, nevertheless, began to influence the rise and development of the modern concept of tariffs that occurred as Britain expanded into an empire in the 17th and 18th centuries.

====Modern Tariffs====[[File:File-20170720-24017-1hxq3ej.jpg|thumb|left|300px|Figure 2. The Corn Laws were tariffs on agricultural grains that intended to expand the domestic production of food. However, the tariffs impeded aid to Ireland, leading to their eventual removal.]]In the late 18th century, Great Britain began to dominate oceanic trade with its powerful navy. At this time, tariffs were very high, roughly 50 percent, which made the import of goods mostly uneconomical. This reflected the political era, where Britain competed with France and Spain for dominance of the high seas, where each actor attempted to limit trade with the other. Tariffs in the early 19th century were reducedstill high; however, Britain's trade in given products began to greatly expand during the early Industrial Revolution. Gradually, Britain reduced tariffs and entirely removed them for food commodities in 1840s. This was, in part, motivated by events in Ireland, which was experiencing the Great Famine that led to a need to export food. Gradually, throughout the 19th century, as industrial production increased, reducing tariffs was seen as a way to benefit economies looking towards exports of manufactured goods as a mean to growth their economies and slowly influencing its outlook on trade.

In the late 18th century United StatesGradually, Britain reduced tariffs were seen as a way and entirely removed them for food commodities in 1840s with the federal government to generate revenue, as income and other forms repeal of taxes had yet to be established. By the early 20th century, political parties were beginning to take sides in the debates about tariffsCorn Laws (Figure 2). The Tariff of 1789 This was one of the first policies enacted that stipulated the rates and types of tariffs in the United States. Throughout much of the early 19th century, the United States generally kept low tariffs. The South of the United States, in particularpart, supported very low tariffs. When the federal government attempted to raise tariffs motivated by events in 1828Ireland, which was experiencing the state of South Carolina threatened full rebellion against the federal government. After the 1850s, however, with economic hardship Great Famine that also occurred after the Civil War, gradually most of the country supported high tariffs on goodsled to a need to export food. This trend continued through the two World Wars. The United States was largely Tariffs were often seen as a protectionist economy that made it difficult for foreign countries way to penetrate the US marketprotect domestic industry and economic sectors such as agriculture. During <dh-ad/>Gradually, throughout the early 19th century, the Whigs supported high as industrial production increased, reducing tariffs, whereas it was the Democrats who supported low tariffs. From the late 19th century, Europe and the United States were seen as largely almost complete separate a way to benefit economies looking towards exports of manufactured goods as a mean to growth economies that had little interactionthrough trade. Tariffs in This followed a general trend throughout Europe, as the United States ranged between 40-50 percenteconomies became more integrated and greater trade now began to flow, while it was 9-12 percent resulting in reduced tariffs in Europe. After the 1930s Great DepressionRather than reduce competition, most countries expanded tariffs and global increased trade was severely limited as spurred countries tried to protect their domestic emulate each other. Germany in particular began to greatly expand its industries that were strugglingas it rapidly developed its economy and began to be more competitive in trade. The Smoot–Hawley Tariff Act of 1930 exemplified this<ref>For more on 19th century tariffs and changing attitudes towards them throughout the 19th century in Europe and Britain, with over 10see: Howe,000 items listed in tariffsAnthony. 1997. This did cause retaliatory measures by different countries<i>Free Trade and Liberal England, including Canada, which shifted much of its trade to the British Empire1846-1946</i>. Oxford : New York: Clarendon Press ; Oxford University Press.</ref>

Events After the 1850s, however, with economic hardship that also occurred after World the Civil War II have shaped recent economic approaches to , gradually most of the country supported high tariffson goods. The The General Agreement on Tariffs and Trade (GATT) in 1947 was created with 23 countries in order to help foster multilateral trade that would help This trend continued through the global economy recover after two World War IIWars. The intent was also to fight Communist and trade United States was largely seen as vital a protectionist economy that made it difficult for US policy in order to counter what they saw as threats from the Soviet Union in attracting foreign countries to their sphere. The GATT became penetrate the framework in which the European Community (EC), which developed into the European Union, into creating regional and bilateral trade agreementsUS market. With the fall of Communism in During the early 1990s19th century, and the increasing influence of Whigs supported high tariffs, whereas it was the International Monetary Fund and World Bank, countries have increasing lowered Democrats who supported low tariffs and signed trade agreements. Regional trade agreements were seen as an important goal, with North AmericaFrom the late 19th century, Europe, Asia, Africa, and South America forming varying agreements. The North American Free Trade Agreement is a recent iteration of this in the early 1990sUnited States were became almost complete separate economies that had little interaction. Today, free trade agreements have generated controversy as many industries see benefit Tariffs in moving manufacturing overseas to lower costs and many countries abandon some forms of manufacturing all together as countries are better able to produce goods at lower costs. Free trade agreements have helped to reorient global trade, with increasingly low margin manufacturing moving to developing countries, while high technology manufacturing is still dominated by mostly developed countries. Rising countries such as Brazil, Russia, India, China, and South Africa (the soUnited States ranged between 40-called BRICS) have increasingly benefited from free trade agreements. Nevertheless50 percent, in more developed countries, there has been backlash against free trade agreements because while it has had the effect of reducing manufacturing production was 9-12 percent in some economic sectorsEurope.

====Recent Developments====Events after World War II have shaped recent economic approaches to tariffs. The General Agreement on Tariffs and Trade (GATT) in 1947 was created with 23 countries in order to help foster multilateral trade that would help the global economy recover after World War II. The GATT became the foundation in which the World Trade Organization (WTO) was built, as it became its successor. The intent of this new economic order was also to fight Communism and trade was seen as vital for US policy in order to counter what they saw as threats from the Soviet Union in attracting countries to their sphere.  GATT became the framework in which other trade agreements, including the European Community (EC), developed into the European Union, in creating regional and bilateral trade agreements. With the fall of Communism in the early 1990s, and the increasing influence of the International Monetary Fund, WTO, and World Bank, countries have increasingly lowered tariffs and signed trade agreements at much higher rates since the 1990s. Regional trade agreements were seen as an important goal, with North America, Europe, Asia, Africa, and South America forming varying agreements. The North American Free Trade Agreement (NAFTA) is an iteration of this in the early 1990s.  Today, free trade agreements have generated controversy as many industries see the benefit of moving manufacturing overseas to lower costs and many countries abandon some forms of manufacturing altogether as countries are better able to produce goods at lower costs. Free trade agreements have helped to reorient global trade, with increasingly low margin manufacturing, such as textiles and basic consumer products, moving to develop countries, while high technology manufacturing is still dominated by most developed countries, although this is also now being challenged.  Rising countries such as Brazil, Russia, India, China, and South Africa (the so-called BRICS) have increasingly benefited from free trade agreements. Nevertheless, in more developed countries, there has been a backlash against free trade agreements because it has had the effect of reducing manufacturing production in some economic sectors.<ref>For more on the evolution of the modern globalized economy and its relation to tariffs, see: Irwin, Douglas A, Petros C Mavroidis, and A. O Sykes. 2009. <i>The Genesis of the GATT</i>. Cambridge; New York: Cambridge University Press. </ref> ====Summary====Tariffs have long been seen as part of the normal operation of business. For most of history, tariffs were high, often leading to global trade involving a relatively small percentage of goods. In the 19th century, tariffs were slowly reduced in Europe and North America, but from the late 19th century the US had some of the highest tariffs among the major powers. This trend continued until after World War II. Since that time, low tariffs across the globalized economy have been seen as a key way to foster a more integrated economic system and one that could promote peace through closer trade cooperation.  However, there has been a lot of controversy around this, as increasingly globalized trade is seen as producing environmental harm, weakening manufacturing in some countries, and some see it as having forced some countries to conform to a single global economic order that not all agree with. <div class="portal" style='float:left; width:35%'>====Related Articles===={{#dpl:category=Economic History|ordermethod=firstedit|order=descending|count=9}}</div> [[Category:Wikis]] [[Category:Economic History]] [[Category:United States History]] [[Category: European History]] ====References====<references/>