Why Were Tariffs Politically Important in Late 19th-Century America?

Heather Cox Richardson

After the Civil War, new industries brought Americans not just new products, but also more spending money and leisure time than any generation had ever had before. Far flung railroad, oil, and steel

President Grover Cleveland humiliated by the Wilson-Gorman Tariff Act.

operations, along with those of every other business, needed middle managers who could oversee production and sales and then report back to business owners. These new “white collar” workers had steady incomes and free time. They bought nice clothing and novels, and went to the theater; their wives played lawn tennis and their children had ice cream to eat and toys to play with at newfangled parties given just for them on their birthday.

Big business brought comfort and entertainment to many Americans, but it also brought grinding poverty to many others. Workers sweating near factory furnaces and entrepreneurs forced out of markets by monopolists resented the power of industrialists. By 1880 they focused their anger on the fact that American industry held its extraordinary position because it was protected by a law that kept foreign goods out of America. That law was called a tariff.

Tariffs were essentially taxes on products coming into America. They meant that foreign goods could not compete with American products because, no matter how cheaply they could be produced, the addition of tariff fees to their selling costs would make them more expensive than American goods. Since American producers did not have to worry about foreign competition, the leaders in an industry could work together and set whatever prices they wished.