From their establishment in 1789, tariffs have not only shaped the American economy but have also considerably influenced global power dynamics by generating global alliances and trade wars. The general function of a tariff is to encourage consumer spending within one’s nation by increasing the cost of purchasing foreign goods. In theory, this would expand the growth of internal industries by providing a monetary incentive to buy cheaper, nation-manufactured goods as opposed to more expensive imported options.
The first use of a tariff in the United States was the Tariff of 1789, imposed under the leadership of President George Washington. According to the United States International Trade Commission, at a convention of the House of Representatives, James Madison proposed the idea of a revenue tariff aimed at raising capital to resolve government debt. Enacted a couple of months later on July 4, 1789, this first tariff imposed a 5% tax on most imported goods, with the intended effect of encouraging the growth of the new nation’s “baby” industries. According to the Fordham Journal of Corporate and Financial Law, the tariff of 1789 was instrumental in the accumulation of government funds, accounting for 95% of government revenue.
One of the earliest examples of retaliation against United States tariffs on foreign goods can be seen in the reactions to the Smoot-Hawley tariff of 1930, aimed at alleviating economic stressors during the Great Depression. The tax raised the average United States Tariff by over 20%, which resulted in a decline in global trade and intensified the global effects of the financial crisis, according to Britannica.
The introduction of tariffs, however, has not always been met with widespread approval. History and Social Sciences Instructor Tom Millar explains that while tariffs have the potential to help manufacturers and big businesses, they have the opposite effect on smaller farmers who depend on the exportation of their produce to generate income.
The inauguration of President Donald Trump has resulted in the rapid implementation of tariffs targeted at foreign nations such as China. According to The White House website, Trump has enacted such tariffs to protect the United States Economy from unfair trading practices.
“Large and persistent annual U.S. goods trade deficits have led to the hollowing out of our manufacturing base; resulted in a lack of incentive to increase advanced domestic manufacturing capacity; undermined critical supply chains; and rendered our defense-industrial base dependent on foreign adversaries.”
Debate Coach and Program Head Adam Torson pointed to the rules and regulations of current trade organizations such as the World Trade Organization and the United States–Mexico–Canada Agreement to highlight some downsides of Trump’s policies.
“The primary weapon that most countries have in trade agreements to make sure they don’t get taken advantage of are reciprocal tariffs,” Torson said. “What will ultimately be the case if the United States maintains its substantially higher tariff regime is that other countries will also raise tariffs, ultimately undoing the progress of those trade agreements”.
The reverberations of Trump’s economic policies have been widely felt and have directly influenced Marlborough traditions. This past month, the junior class participated in the traditional Ring Ceremony, which required participants to purchase a class ring. Audrey ’26 shared the difficulties that some of her classmates experienced while attempting to buy their ring.
“[The tariffs] have affected a lot of my friends because when they went to buy their class ring, the prices were raised by over 100 dollars as a result of Trump’s economic policies,” Audrey said. “The process of purchasing a class ring was much more expensive and made it a lot less affordable for my classmates.”
As the tariffs begin taking effect, Trump has acknowledged that while his policies will be painful in the beginning, they will work towards alleviating economic pressures in the long term. It remains to be seen what the ultimate outcome will be.