15,697
edits
Changes
no edit summary
====Modern Tariffs====
[[File:File-20170720-24017-1hxq3ej.jpg|thumb|left|300px|Figure 2. The Corn Laws were tariffs on agricultural grains which that intended to expand the domestic production of food. However, the tariffs impeded aid to Ireland, leading to their eventual removal.]]In the late 18th century, Great Britain began to dominate oceanic trade with 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. Tariffs in the early 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. 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 Great 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.
Gradually, throughout the 19th century, as industrial production increased, reducing 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 the economies became more integrated and greater trade now began to flow, resulting in reduced tariffs in Europe. Rather than reduce competition, increased trade spurred countries to emulate each other. Germany 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 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>