Walker tariff
Encyclopedia
The Walker Tariff was a set of tariff
rates adopted by the United States
in 1846. The Walker Tariff was enacted by the Democrats
, and made substantial cuts in the high rates of the "Black Tariff
" of 1842, enacted by the Whigs
. It was based on a report by Secretary of the Treasury
Robert J. Walker
. The Walker Tariff reduced tariff rates from 32% to 25%; it coincided with Britain
's repeal of the Corn Laws
and led to an increase in trade. It was one of the lowest tariffs in American history.
was elected President in 1844
over Whig Party (United States)
Henry Clay
, a high tariff advocate.
President
Polk declared that reduction of the "Black Tariff" would be the first of the "four great measures" that would define his administration. He directed Walker to work out the details. In 1846, Polk delivered Walker's tariff proposal to Congress
. Walker urged its adoption in order to increase commerce between the U.S. and Britain. He also predicted that a reduction in tariff rates would stimulate trade, including imports. The result, asserted Walker, would be a net increase in customs revenue despite the reduced rates.
Congress, then controlled by Democrats, acted quickly on Walker's recommendations. Southern Democrats, who had little industry in their states, were especially supportive.
The Walker Tariff produced the nation's first standardized tariff: rather than setting fixed rates for specific items a on a case-by-case basis, it established general schedules into which all goods could be classified, subject to defined ad valorem rates. The bill reduced rates across the board on most major import items save luxury goods such as tobacco
and alcoholic beverage
s.
.
It was passed along with a series of financial reforms proposed by Walker including the Warehousing Act
of 1846. The 1846 tariff rates initiated a fourteen-year period of relative free trade
by nineteenth century standards lasting until the high Morrill Tariff
of 1861.
The Walker Tariff remained in effect until the Tariff of 1857
, which used it as a base and reduced rates further.
The 1861 Morril Tariff raised the effective rate collected on dutiable imports by approximately 70%. Customs revenue from tariffs totaled $345 million from 1861 through 1865.
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
rates adopted by the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1846. The Walker Tariff was enacted by the Democrats
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
, and made substantial cuts in the high rates of the "Black Tariff
Tariff of 1842
The Tariff of 1842, or Black Tariff as it became known, was a protectionist tariff schedule adopted in the United States to reverse the effects of the Compromise Tariff of 1833...
" of 1842, enacted by the Whigs
Whig Party (United States)
The Whig Party was a political party of the United States during the era of Jacksonian democracy. Considered integral to the Second Party System and operating from the early 1830s to the mid-1850s, the party was formed in opposition to the policies of President Andrew Jackson and his Democratic...
. It was based on a report by Secretary of the Treasury
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
Robert J. Walker
Robert J. Walker
Robert John Walker was an American economist and statesman.- Early life and education :Born in Northumberland, Pennsylvania, the son of a judge. He lived in Bellefonte, Pennsylvania from 1806 to 1814, where his father was presiding judge of the judicial district. Walker was educated at the...
. The Walker Tariff reduced tariff rates from 32% to 25%; it coincided with Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's repeal of the Corn Laws
Corn Laws
The Corn Laws were trade barriers designed to protect cereal producers in the United Kingdom of Great Britain and Ireland against competition from less expensive foreign imports between 1815 and 1846. The barriers were introduced by the Importation Act 1815 and repealed by the Importation Act 1846...
and led to an increase in trade. It was one of the lowest tariffs in American history.
Adoption
Democrat James K. PolkJames K. Polk
James Knox Polk was the 11th President of the United States . Polk was born in Mecklenburg County, North Carolina. He later lived in and represented Tennessee. A Democrat, Polk served as the 17th Speaker of the House of Representatives and the 12th Governor of Tennessee...
was elected President in 1844
United States presidential election, 1844
In the United States presidential election of 1844, Democrat James K. Polk defeated Whig Henry Clay in a close contest that turned on foreign policy, with Polk favoring the annexation of Texas and Clay opposed....
over Whig Party (United States)
Whig Party (United States)
The Whig Party was a political party of the United States during the era of Jacksonian democracy. Considered integral to the Second Party System and operating from the early 1830s to the mid-1850s, the party was formed in opposition to the policies of President Andrew Jackson and his Democratic...
Henry Clay
Henry Clay
Henry Clay, Sr. , was a lawyer, politician and skilled orator who represented Kentucky separately in both the Senate and in the House of Representatives...
, a high tariff advocate.
President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Polk declared that reduction of the "Black Tariff" would be the first of the "four great measures" that would define his administration. He directed Walker to work out the details. In 1846, Polk delivered Walker's tariff proposal to Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
. Walker urged its adoption in order to increase commerce between the U.S. and Britain. He also predicted that a reduction in tariff rates would stimulate trade, including imports. The result, asserted Walker, would be a net increase in customs revenue despite the reduced rates.
Congress, then controlled by Democrats, acted quickly on Walker's recommendations. Southern Democrats, who had little industry in their states, were especially supportive.
The Walker Tariff produced the nation's first standardized tariff: rather than setting fixed rates for specific items a on a case-by-case basis, it established general schedules into which all goods could be classified, subject to defined ad valorem rates. The bill reduced rates across the board on most major import items save luxury goods such as tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
and alcoholic beverage
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...
s.
Impact
The bill made moderate reductions in many tariff rates. As Walker had predicted, trade increased substantially, and net revenue collected also increased, from $30 million annually under the Black Tariff in 1845 to almost $45 million annually by 1850. It also improved relations with Britain that had soured over the Oregon boundary disputeOregon boundary dispute
The Oregon boundary dispute, or the Oregon Question, arose as a result of competing British and American claims to the Pacific Northwest of North America in the first half of the 19th century. Both the United Kingdom and the United States had territorial and commercial aspirations in the region...
.
It was passed along with a series of financial reforms proposed by Walker including the Warehousing Act
Warehousing Act
The Warehousing Act of 1846 was a commercial law that allowed merchants to warehouse their imports into the United States and thus delay tariff payments on those goods until a buyer was found...
of 1846. The 1846 tariff rates initiated a fourteen-year period of relative free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
by nineteenth century standards lasting until the high Morrill Tariff
Morrill Tariff
The Morrill Tariff of 1861 was a protective tariff in the United States, adopted on March 2, 1861 during the administration of President James Buchanan....
of 1861.
The Walker Tariff remained in effect until the Tariff of 1857
Tariff of 1857
The Tariff of 1857 was a major tax reduction in the United States, creating a mid-century lowpoint for tariffs. It amended the Walker Tariff of 1846 by lowering rates to around 17% on average....
, which used it as a base and reduced rates further.
The 1861 Morril Tariff raised the effective rate collected on dutiable imports by approximately 70%. Customs revenue from tariffs totaled $345 million from 1861 through 1865.