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Although this topic has gained prominence in recent times, the history of U.S. tariffs began long before 2025, with the Underwood Tariff Act in 1913.
In the latest updates on tariffs, President Donald Trump has declared that on April 2, “reciprocal” tariffs will be announced, a measure that has been dubbed the “Liberation Day.” Since the 1960s, tariffs have emerged through negotiations between various countries. However, Trump’s decisions seem to be heading toward a path that could take control of the process, potentially resulting in monumental changes for the global economy.
Although this topic has gained prominence in recent times, the history of U.S. tariffs began long before 2025 or even 1960. The Underwood Tariff Act, passed in 1913, is recognized as the beginning of this economic trend, marking a significant shift that has influenced U.S. history to this day. In this article, we will explore the most notorious tariffs in U.S. history, highlighting that the struggle for market control is a deeply historical phenomenon.
Tariffs in the United States
The Tariff Act of 1890 was a milestone in U.S. trade policy, significantly raising tariffs on imports to protect domestic industry. However, this increased prices and generated discontent among consumers. By the early 20th century, pressure to reform tariffs grew, as they were seen as an obstacle to economic growth. Businesses and consumers demanded changes, pointing out that tariffs inflated prices and reduced competition. This debate laid the groundwork for a significant transformation in U.S. tariff policy: the Underwood Tariff Act.
In October 1913, the Underwood Tariff Act significantly reduced tariffs, marking a shift from protectionism to a more open trade policy. This reform, aimed at reducing prices and increasing competition, faced opposition but allowed the U.S. to better align with global economic trends, transforming its economic landscape and setting a foundation for future trade policies.
But, what have been the most controversial tariff moments in U.S. history? Based on information from the Back in Time Today and Al Jazeera portals, we have compiled a list of the most significant events.
The Smoot-Hawley Tariff of 1930
After the positive effects of the Underwood Tariff Act, which resulted in economic stability, low prices, and an expanding market, the first signs of a devaluation emerged in 1929. When the Wall Street stock market collapsed, the Great Depression—a global economic crisis that would last for a decade—was triggered. In response, President Herbert Hoover signed the Smoot-Hawley Tariff Act in June 1930. Its initial goal was to protect U.S. farmers from foreign competition, but the law was expanded to include a variety of products, raising tariffs on agricultural and industrial products by about 20%.
The Smoot-Hawley Act quickly sparked trade wars, as several countries, including Canada, France, and Spain, imposed retaliatory tariffs on U.S. products. This slowdown in trade weakened the U.S. economy, and by 1933, exports had dropped by 61%.
The Chicken Tax: 1960
During World War II and the years after, the U.S. government promoted the consumption of fish and poultry due to a shortage of red meat. After the war, globalization accelerated, and Europe began importing cheap U.S. chicken, raising concerns among European farmers whose chickens were more expensive and slower. In 1960, the U.S. and European nations engaged in an expensive trade dispute.
During1962, the European Economic Community (EEC) imposed tariffs on U.S. chicken, leading President Lyndon B. Johnson to respond with retaliatory tariffs on products like potato starch, brandy, and trucks, including a 25% tariff on vehicles valued at over $1,000. The famous “Chicken Tax” on light trucks remains in place, prompting foreign manufacturers to either comply with regulations or assemble vehicles in the U.S.
Lumber and Autos, Tariffs on Canada and Japan: 1982 and 1987
The lumber war between the U.S. and Canada began in 1982 due to differences in cultivation and harvesting methods. The U.S. accused Canada of unfairly subsidizing its softwood lumber, which led to multiple rounds of tariffs and retaliation. This conflict persists today, with a 14% tariff on Canadian lumber in the U.S., even before Trump’s threat of an additional 25%.
Meanwhile, in the same decade, President Ronald Reagan imposed a 100% tariff on $300 million worth of Japanese imports, especially cars. This decision was in response to Japan’s failure to honor a semiconductor trade agreement signed in 1986, which called for Japan to open its market to U.S.-made semiconductors.
Steel Tariffs on Europe: 2002
In 2002, President George W. Bush imposed tariffs between 8% and 30% on foreign steel to protect the U.S. steel industry, except for Mexico and Canada. As a result, steel imports from the affected countries fell by 28% in 2002 and 37% in 2003. However, total steel imports increased by 3%, as the U.S. began importing more steel from countries not affected by the tariffs.
While the tariffs benefited some U.S. steelmakers, they also led to bankruptcies of small businesses and acquisitions by large corporations. In retaliation, Europe threatened to impose tariffs on U.S. products worth $2.2 billion. Before Europe could implement these tariffs, Bush lifted the steel tariffs in 2003.
Donald Trump’s First Tariffs: 2018
During his first term (2016-2020), Donald Trump implemented several tariff policies. In 2018, he imposed tariffs on solar panels and washing machines, as well as a 25% tariff on over 800 Chinese products. China responded with a 178.6% tariff on U.S. sorghum in April 2018, which was lifted shortly after in favor of a 25% tariff on products like soybeans and airplanes.
Additionally, tariffs were imposed on steel (25%) and aluminum (10%) from Canada, Mexico, and the EU that same year. In retaliation, Canada imposed tariffs on various U.S. products. Between 2019 and 2020, the U.S. and China imposed multiple tariffs while negotiating a resolution. The result? In 2020, Joe Biden took office and extended Trump’s tariffs on solar panels in 2022, while tariffs on washing machines expired in February 2023.
The history of the U.S. “trade wars” reveals a cycle of results that can have both benefits and serious consequences for the economy. While uncertainty persists, what is certain is that there are always solutions and new negotiations that help stabilize the market. The world will continue to face tariffs in the coming years, so learning from history can offer valuable lessons for the future.
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