Hello, Reader..
We're hearing a lot about trade wars these days, and for good reason: The United States's proposed tariffs on imports from Canada, Mexico, and China went into effect this week, sparking new debates about economic policy. [1]
These modern trade disputes are part of a long tradition of economic conflicts that have shaped global politics for centuries.
To put this in perspective, trade disputes have played a crucial role in shaping the United Statesโs development from its earliest colonial days to the rise of domestic industries in the 19th century.
Historical Perspective: The Origins of Trade Wars in Early America ๐บ๐ธ
๐ผ๏ธ The Big Picture: Long before the United States became a country, European empires used trade policies to control their colonies. Great Britain, France, Spain, and the Netherlands imposed tariffs, monopolies, and trade restrictions to benefit their economies at the expense of their colonies.
โ๏ธ Why It Mattered: The Navigation Acts (1651โ1775) forced British American colonists to trade primarily with Great Britain, limiting economic opportunities and fueling resentment that contributed to the American Revolution.
๐บ๐ธ Evolution Over Time: After independence, the young United States struggled to balance free trade and protectionism. Policies like the Embargo Act of 1807 and The Tariff of 1816 reflected ongoing debates over economic independence and national security.
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๐ Go Deeper: The Development of Trade Policies
Economic warfare wasnโt just a colonial grievance: it became a central issue in early American politics. Here are some key moments:
๐ด๓ ง๓ ข๓ ฅ๓ ฎ๓ ง๓ ฟThe Navigation Acts (1651-1775)๐ฌ๐ง: These English (later British) trade laws attempted to regulate colonial trade and ensure that the economic benefits of trade flowed primarily to England. These laws restricted exports to Britain's North American colonies to ships from England (later the United Kingdom). They required colonial exports like tobacco, sugar, and cotton to be shipped to England before they could be sent to foreign ports. The acts also discouraged the colonists from engaging in foreign trade by prohibiting direct trade with other nations and by imposing high import duties on goods from outside the British Empire. [2]
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๐บ๐ฒ The Embargo Act of 1807: At President Thomas Jefferson's request, the United States Congress passed the Embargo Act of 1807 on December 22, 1807.
The law aimed to pressure and punish Great Britain and France for interfering with U.S. merchant ships. The United States remained neutral during the Napoleonic Wars and traded with both countries, but neither wanted the U.S. to support its enemy.
The embargo banned all U.S. vessels from sailing to foreign ports and required ships sailing between U.S. ports to post a bond ensuring they would not engage in foreign trade.
Historians have noted that the Embargo Act did not have the desired effect. It failed to influence Great Britain or France and devastated the U.S. economy, leading to widespread smuggling. [3]
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๐ฅ The War of 1812: A combination of factors led to the War of 1812 between the United States and Great Britain: British impressment of U.S. sailors, disputes over western lands, Indigenous lands and diplomacy, the U.S. Embargo Act, British interference with U.S. trade, and the broader Napoleonic Wars.
The war reinforced the United States's need for economic self-sufficiency; increasing support for domestic manufacturing and reducing dependence on Great Britain. [4]
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๐บ๐ฒ The Tariff of Abominations (1828): On May 19, 1828, Congress passed the Tariff of 1828, raising taxes on imported goods, with some rates reaching near 50 percent. The tariff sought to protect U.S. manufacturing from cheaper British-made imports.
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Winners: Northeastern manufacturers, whose factories thrived under protection.
โ Losers: Southern planters, who depended on exporting slave-grown cotton to Great Britain.
Southern critics called it the "Tariff of Abomindations," escalating continued sectional tensions. This led to the Nullification Crisis (1832-1833), when South Carolina declared the tariff unconstitutional and attempted to nullify it within its borders. [5]
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Trade Wars in U.S. History: A Lasting Debate
The balance between free trade and protectionism has remained a continuous issue throughout United States history. Trade policies have shaped industries, labor markets, and international relations-- even before the founding of the United States.
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๐ง Tune In For More
To discover more about the intricate history of trade wars and economic policy, check out these episodes of Ben Franklinโs World:
๐ Episode 159: How British trade networks, the Navigation Acts, and the consumer revolution influenced the colonial economy and fueled revolutionary sentiments.
๐ Episode 161: Smuggling in the 18th-century Atlantic World and its impact on the American Revolution.
๐ Episode 325: How economic factors, including trade policies, shaped the lives of ordinary people during the American Revolution.
๐ Episode 337: The early United States's pursuit of trade with China and its impact on economic policy.
๐ Episode 401: The role of the Navigation Acts in fomenting the Boston Tea Party, plus how smuggling, the Tea Act, and non-importation movements influenced the American Revolution.
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๐ง Share Your Thoughts!
What do you think?
What lessons can today's policymakers learn from early American trade wars?
๐ฉ Hit Reply to share your thoughts or post a question.
๐ฌ Join our Facebook community to connect with fellow history lovers.
Have a good weekend,
โLiz Covartโ
Host, Ben Franklinโs Worldโ
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๐ End Notes
[1] David Lawder & Kyle Madry, "Trump triggers trade war with tariffs on Canada, China and Mexico," Reuters, March 4, 2025, https://www.reuters.com/world/trade-wars-erupt-trump-hits-canada-mexico-china-with-steep-tariffs-2025-03-04/, accessed March 4, 2025; Ana Swanson, Ian Austen, & Simon Romero, "Trump's Tariffs on Canada, Mexico, and China Snap Into Effect, The New York Times, March 4, 2025,https://www.nytimes.com/2025/03/04/business/economy/trump-tariffs-canada-mexico-china.html, accessed March 4, 2025.
[2] John J. McCusker and Kenneth Morgan, eds., The Early Modern Atlantic Economy, (New York: Cambridge University Press, 2000); John J. McCusker and Russell R. Menard, The Economy of British America, 1607-1789, (Chapel Hill, NC: University of North Carolina Press, 1985).
[3] Encyclopedia Britannica, "Embargo Act," https://www.britannica.com/topic/Embargo-Act, accessed March 4, 2025; Thomas Jefferson's Monticello, "Embargo Act of 1807," https://www.monticello.org/research-education/thomas-jefferson-encyclopedia/embargo-1807/#Non-Importation_Acts, accessed March 4, 2025.
[4] Alan Taylor, The Civil War of 1812: American Citizens, British Subjects, Irish Rebels, & Indian Allies, (New York: Alfred J. Knopf, 2010); Nicolas Guyatt, The Hated Cage: An American Tragedy in Britain's Most Terrifying Prison, (New York: Basic Books, 2022).
[5] Alan Taylor, American Republics: A Continental History of the United States, 1783-1850, (New York: W.W. Norton & Company, 2021); Daniel Walker Howe, What Hath God Wrought: The Transformation of America, 1815-1848, (New York: Oxford University Press, 2007).
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๐ Further Reading
John J. McCusker and Russell R. Menard, The Economy of British America, 1607-1789, (Chapel Hill, NC: University of North Carolina Press, 1985)
Alan Taylor, The Civil War of 1812: American Citizens, British Subjects, Irish Rebels, & Indian Allies, (New York: Alfred J. Knopf, 2010)
Alan Taylor, American Republics: A Continental History of the United States, 1783-1850
Daniel Walker Howe, What Hath God Wrought: The Transformation of America, 1815-1848, (New York: Oxford University Press, 2007)
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