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[[File:Main-image.jpeg|thumb|Figure 1. Old Assyrian trade colony tablets detail levies paid by merchants. Despite the taxes, the trade proved highly profitable for the merchants. ]]
Trade tariffs have long been part of trading relationships since antiquity. Governments have long taxed products coming through their territories as ways to raise funds either directly for the ruler or the wider government. This is no different today. However, the nature and how tariffs have been applied has changed.
====Early History of Tariffs====Some of the earliest tariffs are recorded from texts in the 3rd and 2nd millennium BCE. The Old Assyrian trade colony in Anatolia, in the ancient city of Kanesh, was a thriving city that received tin metals and wool and traded precious metals to ancient Assyria in modern day northern Iraq. The trade was taxed by local rulers in Anatolia and along the route of trade in Syria. Transit costs and Assyrian merchants living in Kanesh would have to pay taxes in conducting their trade enterprise that appears to be mutually beneficial.
The Roman Empire had a series of tariffs in different parts of the empire, although generally there was no unified system. There were internal tariffs, which governed goods that moved within the empire. These goods were taxed at rates ranging between 1-5 percent. Foreign goods could be taxed at rates ranging between 12-25 percent. This often made luxury goods well beyond the means of average Romans. Goods from the East were particularly taxed at high rates. Silk from China, for instance, was in high demand but could mostly only be afforded by the upper elites.<ref>For more on Roman Empire trade, tariffs, and taxes, see: Temin, Peter. 2017. <i>The Roman Market Economy. The Princeton Economic History of the Western World</i>. Princeton, NJ: Princeton Univ. Press. </ref>
In the Medieval period, around the 13th century, we begin to see more regulation of tariff costs for specific commodities. Wool, for instance, was heavily regulated in England in the 13th and 14th centuries. Tariffs were relatively high as wool was seen as an important pillar of the English Medieval economy and protecting it was a chief goal. Other commodities, such as skins and leather, lead, tin, butter, cheese, lard and grease, were levied as well. However, rather than a specified rate, often the taxes were based on the container of the commodity of trade. For instance, a sack of wool was levied at roughly 6 shillings and 8 pence. This could allow merchants, of course, to cheat more easily by switching commodities in sacks, which were taxed at variable rates, or containers were smuggled without a tax. Items would be weighed but the volume of trade meant not everything could be easily inspected. Ports and trade routes were often levied to directly benefit the crown. This tradition in England, nevertheless, began to influence the rise and development of the modern concept of tariffs that occurred as Britain expanded into an empire in the 17th and 18th centuries.<ref>For more on Medieval trade in England and its tariffs, see: Rose, Susan. 2018. <i>The Wealth of England: The Medieval Wool Trade and Its Political Importance 1100-1600</i>. Oxford: Oxbow Books.</ref>
====Modern Tariffs====[[File:MainFile-20170720-24017-image1hxq3ej.jpegjpg|thumb|Figure 12. The Corn Laws were tariffs on agricultural grains which intended to expand domestic production of food. Old Assyrian However, the tariffs impeded aid to Ireland, leading to their eventual removal.]]In the late 18th century, Great Britain began to dominate oceanic trade colony tablets detail levies paid by merchantswith its powerful navy. At this time, tariffs were very high, roughly 50 percent, which made the import of goods mostly uneconomical. This reflected the political era, where Britain competed with France and Spain for dominance of the high seas, where each actor attempted to limit trade with the other. Despite Tariffs in the taxesearly 19th century were still high; however, Britain's trade in given products began to greatly expand during the early Industrial Revolution, slowly influencing its outlook on trade proved highly profitable . Gradually, Britain reduced tariffs and entirely removed them for food commodities in 1840s with the repeal of the Corn Laws (Figure 2). This was, in part, motivated by events in Ireland, which was experiencing the merchantsGreat Famine that led to a need to export food. Tariffs were often seen as a way to protect domestic industry and economic sectors such as agriculture. ]]
In the late 18th century, Great Britain began to dominate oceanic trade with its powerful navy. At this timeUnited States, tariffs were very high, roughly 50 percent, which made seen as a way for the import of goods mostly uneconomical. This reflected the political erafederal government to generate revenue, where Britain competed with France as income and Spain for dominance other forms of the high seas, where each actor attempted federal taxes had yet to limit trade with the otherbe established. Tariffs in By the early 19th 20th century , political parties were still high; however, Britain's trade beginning to take sides in given products began to greatly expand during the early Industrial Revolution, slowly influencing its outlook on tradedebates about tariffs. Gradually, Britain reduced The Tariff of 1789 was one of the first policies enacted that stipulated the rates and types of tariffs and entirely removed them for food commodities in 1840s with the repeal United States. Throughout much of the Corn Laws (Figure 2). This was, in part, motivated by events in Irelandearly 19th century, which was experiencing the Great Famine that led to a need to export foodUnited States generally kept low tariffs. Tariffs were often seen as a way to protect domestic industry and economic sectors such as agriculture. Gradually, throughout The South of the 19th centuryUnited States, as industrial production increasedin particular, reducing supported very low tariffs was seen as a way to benefit economies looking towards exports of manufactured goods as a mean to growth economies through trade. This followed a general trend throughout Europe, as When the economies became more integrated and greater trade now began federal government attempted to flow, resulting in reduced raise tariffs in Europe. Rather than reduce competition1828, increased trade spurred countries to emulate each otherthe state of South Carolina threatened full rebellion against the federal government. Germany Economic exports of cotton in particular began to greatly expand its industries as it rapidly developed its economy and began to be more competitive in trade.<ref>For more on 19th century would have been threatened by higher tariffs and changing attitudes towards them throughout the 19th century in Europe and Britain, see: Howe, Anthony. 1997. <i>Free Trade and Liberal England, 1846-1946</i>. Oxford : New York: Clarendon Press ; Oxford University Press. </ref>
====Recent Developments====
Events after World War II have shaped recent economic approaches to tariffs. The General Agreement on Tariffs and Trade (GATT) in 1947 was created with 23 countries in order to help foster multilateral trade that would help the global economy recover after World War II. The GATT became the foundation in which the World Trade Organization (WTO) was built, as it became its successor. The intent of this new economic order was also to fight Communism and trade was seen as vital for US policy in order to counter what they saw as threats from the Soviet Union in attracting countries to their sphere.
Today, free trade agreements have generated controversy as many industries see the benefit of moving manufacturing overseas to lower costs and many countries abandon some forms of manufacturing all together as countries are better able to produce goods at lower costs. Free trade agreements have helped to reorient global trade, with increasingly low margin manufacturing, such as textiles and basic consumer products, moving to developing countries, while high technology manufacturing is still dominated by mostly developed countries, although this is also now being challenged. Rising countries such as Brazil, Russia, India, China, and South Africa (the so-called BRICS) have increasingly benefited from free trade agreements. Nevertheless, in more developed countries, there has been backlash against free trade agreements because it has had the effect of reducing manufacturing production in some economic sectors.<ref>For more on the evolution of the modern globalized economy and its relation to tariffs, see: Irwin, Douglas A, Petros C Mavroidis, and A. O Sykes. 2009. <i>The Genesis of the GATT</i>. Cambridge; New York: Cambridge University Press. </ref>
====Summary====
Tariffs have long been seen as part of the normal operation of business. For most of history, tariffs were high, often leading to global trade involving a relatively small percentage of goods. In the 19th century, increasingly tariffs were reduced in Europe and North America, but from the late 19th century the US had some of the highest tariffs among the major powers. This trend continued until after World War II. Since that time, low tariffs across the globalized economy have been seen as a key way to foster a more integrated economic system and one that could promote peace through closer trade cooperation. However, there has been a lot of controversy around this, as increasingly globalized trade is seen as producing environmental harm, weakening manufacturing in some countries, and some see it as having forced some countries to conform to a single global economic order that not all agree with.
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