Tariffs can be boom or bust … often bust.
They’re usually sold to voters as a way to protect national interests — but history tells a different story.
Over the centuries, aggressive tariff policies have triggered economic downturns, ignited trade wars, and even fueled global crises. Here are seven moments when tariffs didn’t just miss the mark — they made everything worse.
The Tariff of Abominations (1828)
This steep tariff on imported goods aimed to protect Northern industries but enraged the South.
Cotton-exporting states saw costs soar, leading to a constitutional crisis and the Nullification Crisis. The economic division deepened North-South tensions that would later explode into the Civil War.
Smoot-Hawley Tariff Act (1930)
Passed during the Great Depression, this act raised U.S. tariffs on over 20,000 goods.
Global trade collapsed as countries retaliated, worsening unemployment and deepening the depression. World exports dropped by 66% between 1929 and 1934—a cautionary tale for economic nationalism.
British Corn Laws (1815–1846)
These tariffs on imported grain protected wealthy landowners but caused food prices to spike, hurting workers and the poor.
The result was social unrest and widespread famine vulnerability. Their repeal in 1846 was driven by public outrage and a recognition of the damage to the broader economy.
French Wine Tariffs (1880s)
To punish Italy during a diplomatic dispute, France slapped high tariffs on Italian wine.
Italy retaliated with steep duties on French goods. The resulting trade war crippled exports and caused lasting damage to both economies—hurting farmers, merchants, and consumers across the Mediterranean.
U.S.–China Trade War (2018–2020)
Tariffs on billions in Chinese imports led to retaliatory tariffs on American agriculture and manufacturing.
Soybean exports to China dropped 75% in 2018. U.S. businesses faced uncertainty, while global markets wobbled. Estimates suggest the trade war cost the U.S. economy $316 billion … so far.
Argentina’s Tariff Binge (1970s)
Attempting to shield local industry, Argentina raised steep tariffs on imports.
Instead of boosting domestic growth, inflation soared, corruption spread, and investment dried up. Economic instability followed, setting the stage for the country’s infamous hyperinflation and debt crisis of the 1980s.
India’s Protectionist Era (1950s–1980s)
India adopted high tariffs and tight import controls after independence to protect local industry.
But it stifled innovation and limited consumer choice. Known as the “License Raj” period, it created a sluggish, insular economy that only recovered after sweeping liberalization in the 1990s.
