McKinley Tariff of 1890

Definition

The McKinley Tariff of 1890 was a significant piece of legislation in the United States that raised import duties on foreign goods to historically high levels, reflecting a shift towards protectionist trade policies. By increasing tariffs, the McKinley Tariff aimed to protect American industries from foreign competition and encourage domestic production. This act is often viewed as a turning point in U.S. trade policy, sparking debates about the balance between free trade and protectionism.

5 Must Know Facts For Your Next Test

1. The McKinley Tariff increased average duties on imports to about 48%, making it one of the highest tariffs in U.S. history at that time.
2. It was named after William McKinley, who was a key supporter and advocate for the legislation while serving in the House of Representatives.
3. The tariff was intended to protect American sugar producers by imposing higher duties on imported sugar from countries like Hawaii and Cuba.
4. The passage of the McKinley Tariff led to significant backlash from consumers and farmers, as it raised prices on many imported goods.
5. The tariff played a role in the Republican Party's loss in the 1890 midterm elections, highlighting public discontent with high tariffs and protectionist policies.

Review Questions

• How did the McKinley Tariff of 1890 reflect the shift in American trade policy towards protectionism during that era?
  • The McKinley Tariff of 1890 marked a notable shift towards protectionist trade policies by significantly raising import duties on foreign goods. This reflected a growing sentiment among American lawmakers and industrialists who believed that protecting domestic industries was essential for economic growth. The high tariffs aimed to shield American businesses from foreign competition, which illustrated a departure from previous free trade ideals prevalent in earlier U.S. economic policy.
• What were the immediate economic impacts of the McKinley Tariff on consumers and industries within the United States?
  • The immediate economic impacts of the McKinley Tariff were felt across various sectors. While it aimed to protect domestic industries by increasing prices on imports, consumers faced higher costs for everyday goods due to inflated prices. Many farmers, especially those who relied on exported crops, also suffered as retaliation from other countries led to decreased demand for American agricultural products, thus causing widespread dissatisfaction with the law.
• Evaluate the long-term consequences of the McKinley Tariff of 1890 on American political dynamics and trade policy into the early 20th century.
  • The long-term consequences of the McKinley Tariff significantly influenced American political dynamics and trade policy moving into the early 20th century. The backlash against high tariffs contributed to shifts within political parties, especially as the Democratic Party capitalized on public discontent over protectionist measures. This period laid groundwork for future debates on trade policies, leading to a fluctuating balance between free trade and protectionism as the U.S. sought to navigate its growing role in global commerce amid changing economic landscapes.

Related terms

Tariff: A tax imposed on imported goods, used to increase government revenue and protect domestic industries.

Protectionism:

An economic policy that restricts imports to protect domestic industries from foreign competition.

Reciprocity: An agreement between countries to provide mutual benefits, such as reduced tariffs or trade barriers.