U.s. Trade Policy Policies

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U.S. Trade Policy Throughout history, the United States’ trading policies have shifted from early protectionism intended to generate revenue and support domestic industry growth to a high degree of free trade within the international trade market (Carbaugh, 2015). In between, policy changes designed to increase and decrease tariffs were enacted due to pressure from politicians, economists, industries, citizens and other countries. Yet, emphasized in the ensuing paragraphs, America’s continuous efforts to maintain a sufficient amount of trade tariffs has continuously led to fluctuations in the domestic economy. Along with the country’s practice of protectionism, the policies that influenced the major changes in tariff rates include the…show more content…
As the initial tariffs laws prospered enough to yield over 90 percent of the federal government’s total revenue, pressures from developing industry leaders urging for a higher degree of protection needed to combat growing foreign competition overwhelmed the governments revenue motives (Carbaugh, 2015). Highlighted by Alexander Hamilton’s propositions to the federal government in 1791, actions in the form of higher import tariffs and government subsidies were essential to the promotion of manufacturing within the United States (Irwin, 1996). Consequently, these views fueled a growing debate and struggle between the North’s industry led economy who favored higher duties on imports and the South’s import dependent economy, which relied on lower costs (Carbaugh, 2015). With the government’s passing of the Tariff of Abominations in 1828, their intentions of promoting the purchase of domestic goods by increasing the price of cheaper foreign products, mostly from English exporters, enraged the Southern economy due to the record setting tariff duties that were the highest in the world (Wilson, 2009). Additionally, the Southern states desired lower tariffs in order encourage the trade of cotton and tobacco, which were supplied by Southern farmers and plantation owners (Wilson, 2009).
Although the Tariff of
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