History Extra Podcast: "Tariffs and Trade Wars: A History of Economic Warfare"

Release Date: April 1, 2025

Introduction

In the April 1, 2025 episode of the History Extra Podcast, host Matt Elton engages in a profound conversation with Frank Trentmann, Professor of History at Birkbeck University of London. The episode, titled "Tariffs and Trade Wars: A History of Economic Warfare," delves into the historical intricacies of tariffs and their role in shaping economic and political landscapes across centuries. As global headlines buzz with modern trade tensions, Trentmann provides a scholarly lens to understand these phenomena through the annals of history.

I. Historical Roles of Tariffs: Revenue, Protection, and Retaliation

Frank Trentmann opens the discussion by tracing the origins of tariffs, highlighting their multifaceted purposes. He states, “[00:11] Tariffs were there right from the start. So we're in the late 18th century at that point. It was mainly as a revenue measure to bring in money into the coffers of the state” (Trentmann, 01:11). Beyond revenue, tariffs have been instrumental in protecting domestic industries from foreign competition and serving as tools for retaliation in international disputes. However, Trentmann underscores the inherent conflict in achieving these objectives simultaneously: “you can’t achieve these three goals simultaneously. They rule each other out, right?” (01:45).

II. Tariffs as Discriminatory Taxes

Clarifying the nature of tariffs, Trentmann emphasizes their discriminatory aspect. “A tariff is a discriminatory tax,” he explains (03:05). Unlike non-discriminatory import duties, tariffs are specifically designed to favor domestic producers over foreign ones. This differentiation is crucial in understanding the political and economic motivations behind tariff implementations throughout history.

III. The Agricultural Focus of Early Tariffs

Delving into historical applications, Trentmann notes the prevalence of tariffs on foodstuffs. “[04:21] In pre-industrial societies, the biggest group of interests is the farming lobby... the British corn laws, the purpose was to keep out cheaper foreign wheat and rye, to protect and in a way subsidize farmers at home.” The emphasis on agricultural products reflects the economic structures of early societies, where agriculture was the backbone of both the economy and political power.

IV. Evolution of Tariff Targets: From Foodstuffs to Industrial Goods

As societies industrialize, the focus of tariffs shifts from basic foodstuffs to industrial products. Trentmann observes, “[05:35] With industrialization, industrial goods become much more important. That's ultimately where the workforce is, that's where wealth is created.” Modern trade wars, such as the current focus on steel tariffs, signify this evolution. However, he also reminds listeners of the historical significance of agricultural tariffs during crises like World War I, where food security became a matter of national survival.

V. Comparative Historical Perspective: Current Tariffs vs. Historical Examples

Comparing contemporary tariffs to historical instances, Trentmann provides context on their relative severity and impact. “when William McKinley became president in 1897... his tariffs were higher, almost twice as high than Trump's right now, and they were on a much bigger range of goods” (08:20). He further discusses the infamous Smoot-Hawley Tariff of 1930-1931, which, despite widespread criticism, exemplified the extreme protectionist measures of the past.

VI. The U.S. Trade Policy Legacy

Trentmann offers a nuanced view of the United States' historical stance on tariffs. Contrary to the belief that modern protectionism is unprecedented, he explains, “Over 200 years, the United States, for the most part of that, has been protectionist” (08:20). The post-World War II era marked a significant shift towards trade liberalization under frameworks like the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), promoting reduced tariff barriers and increased global trade cooperation.

VII. Intellectual Influences: Friedrich List and Protectionism

Highlighting the role of intellectual thought, Trentmann introduces Friedrich List, a German economist whose ideas profoundly influenced protectionist policies. “[...] the man who probably had more influence in spreading protectionist ideas was a German, Friedrich List... he very much criticized British liberal economists... arguing that if two countries are trading with each other, they're rarely equal” (16:55). List's perspective underscored the power dynamics inherent in international trade, advocating for strategic protectionism to ensure national economic advancement.

VIII. Political Implications of Tariffs: Democracy, Lobbies, and Group Politics

Tariffs have always been more than economic instruments; they are deeply entwined with political power and democratic processes. Trentmann elaborates, “revenues from tariffs have political consequences because tariffs benefit well-organized, powerful lobbies and interest groups” (19:43). Historically, groups ranging from farmers to women's organizations have rallied either in support or opposition of tariffs, influencing policy through advocacy and political mobilization. The debate over tariffs often mirrors broader struggles over economic policy and national identity.

IX. Case Study: The U.S.-Canada Trade Relationship

Focusing on North American dynamics, Trentmann discusses the complex trade relationship between the United States and Canada. “[22:30] Canada is an interesting case... trade dependence on the US is particularly pronounced.” The historical context of imperial preferences and the struggle for Canadian trade autonomy illustrate how tariffs have been pivotal in shaping bilateral relations and national identity within the Commonwealth framework.

X. Contemporary Shifts: Declining Political Salience of Tariffs

In the modern era, the political landscape around tariffs has transformed significantly. “[24:35] Tariffs and free trade occupy a different place in the political imagination... it's not a question of political identity or something that gets people onto the barricades.” Trentmann attributes this shift to several factors, including the expansion of state functions, diversified revenue sources beyond tariffs, and the globalization of trade negotiations to supranational bodies like the WTO. Consequently, public engagement with tariff policies has diminished, relegating them to the realm of expert and bureaucratic discourse.

Conclusion: Understanding Tariffs in Historical and Modern Context

Frank Trentmann's insightful exploration offers a comprehensive understanding of tariffs beyond their immediate economic implications. By contextualizing current trade wars within a broader historical framework, he elucidates the persistent tensions between national interests and global economic integration. The episode underscores the importance of historical awareness in navigating contemporary economic policies, highlighting that while the mechanisms of tariffs evolve, their foundational roles in revenue generation, protectionism, and political leverage remain enduring.

Notable Quotes:

• “[...] tariffs were there right from the start. So we're in the late 18th century at that point. It was mainly as a revenue measure to bring in money into the coffers of the state” (01:11).

• “You can’t achieve these three goals simultaneously. They rule each other out, right?” (01:45).

• “A tariff is a discriminatory tax” (03:05).

• “Over 200 years, the United States, for the most part of that, has been protectionist” (08:20).

• “traders are rarely equal. The stronger one will use trade to advance their interests” (16:55).

• “the issue around tariffs or free trade is the issue around which they organize and often form their first big public political meetings” (19:56).

• “Tariffs and free trade occupy a different place in the political imagination and in political culture from that they used to in the early 20th century” (24:48).

This episode serves as a valuable resource for historians, economists, and anyone interested in the intricate dance between trade policies and global power dynamics. By bridging past and present, Trentmann provides listeners with a nuanced perspective on the enduring relevance of tariffs in shaping our world.