Tariffs were originally created as a source of revenue for countries. They have been used since before the colonial times. The first tariffs in the United States were established on July 4, 1789 (http://college.hmco.com/history/readerscomp/rcah/html/ah_084500_tariff.htm). After Alexander Hamilton was appointed the first secretary of the treasury he “submitted to Congress his Report on Manufactures in which he set forth his systematic vision of how the country should develop economically. In it he called for protective tariffs to foster American industry. Although this report, in retrospect, was the work of a man who saw the economic future more clearly than any of his contemporaries, Congress ignored it at the time and continued to set tariffs based solely upon the ebb and flow of political pressure (http://college.hmco.com/history/readerscomp/rcah/html/ah_084500_tariff.htm).” While some countries have tariffs on exporting goods, tariffs in the US are all on imported goods, as allowed for in the US constitution. With the raise of the free trade movement in the early 19th century, tariffs were viewed less favorable. Regardless of this, imperial preference tariffs emerged toward the end of that century (http://www.1upinfo.com/encyclopedia/T/tariff-history.html). The move toward free trade began in earnest after World War Two. Agreements between countries have been created. Some of the most popular ones include the most-favored-nation clause, and the reciprocal trade agreement (http://www.1upinfo.com/encyclopedia/T/tariff-history.html ). General Agreement on Tariffs and Trade (GATT) was formed in 1948. This organization was replaced in 1995 by the more powerful World Trade Organization (WTO) (http://www.1upinfo.com/encyclopedia/T/tariff-history-trend-toward-free-trade.html). As far as the tariffs in the United States are concerned, the very first tariff was created in 1789 primarily for revenue. All later tariffs however were place soley as protection tariffs. The first protective tariff was in 1816 (http://www.u-s-history.com/pages/h963.html). Other US tariffs include the tariff of 1824, the “Tariff of Abominations, the Wartime tariff acts, the “Mongrel” Tariff, the McKinley Tariff, the Dingley Tariff, the Underwood-Simmons Tariff, and the Hawley-Smoot Tariff (http://www.u-s-history.com/pages/h963.html). In the United States, the tariff has been a great issue of debate for decades. One of the biggest tariff debates was on the Hawley-Smoot tariff. This tariff was passed in 1930 by congress. This bill brought US tariffs up to the highest protective level in history (http://www.1upinfo.com/encyclopedia/H/HawleySm.html). It raised the tariff on certain goods to 60%. This act is said to have increased the depression in the United States. The concern that this tariff act created did not put an end to tariffs in the US or elsewhere. There are still tariffs today all around the world, though free trade advocates have been actively urging governments to enter into free trade agreements since world war two.
