Mckinley Tariff Act Of 1890 Apush

The McKinley Tariff Act of 1890 is a significant piece of legislation in United States history, particularly when studying American history (APUSH). This protectionist tariff, named after its sponsor, Representative William McKinley of Ohio, dramatically increased tariff rates on imported goods. Its impact rippled through the American economy, sparking debates about the role of government in trade, the interests of different economic sectors, and the implications for international relations. Understanding the McKinley Tariff requires a comprehensive exploration of its origins, provisions, consequences, and long-term historical significance.

Understanding the Historical Context

The late 19th century was a period of rapid industrialization, urbanization, and agricultural transformation in the United States. The Republican Party, dominant in national politics during this era, generally favored protectionist policies to shield American industries from foreign competition. Tariffs, taxes on imported goods, were a primary source of federal revenue and were seen as a way to promote domestic manufacturing and jobs.

However, protectionist policies were not without controversy. Farmers and consumers often argued that high tariffs led to higher prices for goods, reducing their purchasing power and profitability. The debate over tariffs was a central issue in American politics, pitting industrialists and workers in manufacturing sectors against farmers and consumers.

Genesis of the McKinley Tariff Act

The push for a new tariff act in 1890 was driven by several factors:

• Republican Dominance: The Republican Party, which traditionally advocated for protectionist policies, controlled both the White House (under President Benjamin Harrison) and Congress.
• Pressure from Industries: American manufacturers sought higher tariffs to protect themselves from foreign competition, especially from European industries.
• Budget Surplus: The federal government had accumulated a significant budget surplus, which some policymakers believed could be reduced by lowering internal taxes and increasing tariffs.

Representative William McKinley, a prominent Republican and chairman of the House Ways and Means Committee, took the lead in drafting the new tariff legislation. McKinley was a staunch protectionist who believed that tariffs were essential for promoting American prosperity.

Key Provisions of the McKinley Tariff Act

The McKinley Tariff Act of 1890 was a comprehensive and complex piece of legislation that significantly altered tariff rates on a wide range of imported goods. Key provisions included:

1. Increased Tariff Rates: The act raised average tariff rates on imports to nearly 50%, one of the highest levels in American history.
2. Protection for Agricultural Goods: While primarily aimed at protecting manufacturing industries, the McKinley Tariff also included provisions to protect American farmers. It placed tariffs on imported agricultural products, such as wheat, corn, and livestock, to shield them from foreign competition.
3. The Reciprocity Clause: One of the most notable features of the McKinley Tariff was the "reciprocity clause." This provision authorized the President to negotiate tariff reductions with countries that agreed to lower their tariffs on American goods. The goal was to promote American exports by securing favorable trade agreements with other nations.
4. Sugar Subsidies: The act eliminated tariffs on raw sugar imports but provided subsidies to American sugar producers. This provision aimed to protect the domestic sugar industry while keeping sugar prices affordable for consumers.

Economic Consequences and Impact

The McKinley Tariff Act had a wide-ranging impact on the American economy and sparked considerable debate about its effects.

• Increased Prices: One of the most immediate consequences of the McKinley Tariff was an increase in the prices of imported goods. This affected consumers, who had to pay more for many products, and industries that relied on imported raw materials.
• Impact on Farmers: While the McKinley Tariff aimed to protect American farmers, its effects were mixed. The tariffs on imported agricultural goods had limited impact, as the United States was already a major agricultural producer. However, farmers also faced higher prices for manufactured goods, which reduced their purchasing power.
• Trade Relations: The reciprocity clause of the McKinley Tariff led to negotiations with several countries, particularly in Latin America. Some reciprocal trade agreements were reached, but others were unsuccessful. The tariff also strained relations with some European countries, which viewed it as unfairly protectionist.
• Impact on Hawaiian Annexation: The McKinley Tariff played a significant role in the annexation of Hawaii. The elimination of tariffs on raw sugar imports hurt Hawaiian sugar planters, who had previously enjoyed preferential access to the American market. To avoid the tariffs, some Hawaiian planters began advocating for annexation to the United States, which would allow them to sell their sugar duty-free.
• Impact on Industries: The industries that benefited from the McKinley Tariff were primarily manufacturers of finished goods. The increased duties on imports allowed these industries to raise their prices without fearing foreign competition. This helped to stimulate the growth of American manufacturing.

Political Fallout and Public Reaction

The McKinley Tariff Act was highly controversial and became a major issue in the 1890 midterm elections.

• Public Discontent: Many Americans, particularly farmers and consumers, were unhappy with the McKinley Tariff. They argued that it raised prices and benefited wealthy industrialists at their expense.
• Democratic Gains: The Democratic Party, which opposed the McKinley Tariff, made significant gains in the 1890 elections. The Republicans lost control of the House of Representatives, and the Democrats gained seats in the Senate.
• McKinley's Political Career: Ironically, William McKinley, the author of the tariff act, lost his own seat in the House of Representatives in the 1890 elections. However, he later rebounded and went on to become Governor of Ohio and President of the United States.

Repeal and Replacement: The Wilson-Gorman Tariff Act

The McKinley Tariff Act remained in effect until 1894, when it was replaced by the Wilson-Gorman Tariff Act. The Wilson-Gorman Tariff, passed by a Democratic Congress, lowered tariff rates somewhat but was still protectionist in nature. It also included a provision for a federal income tax, which was later struck down by the Supreme Court.

Historical Significance and Legacy

The McKinley Tariff Act of 1890 holds significant historical importance for several reasons:

1. Height of Protectionism: The act represented the high point of protectionist policies in the United States. It reflected the belief that tariffs were essential for promoting American industrial growth and prosperity.
2. Debate over Government Intervention: The McKinley Tariff sparked a national debate about the role of government in the economy. Critics argued that the tariff unfairly benefited some sectors at the expense of others and that it distorted market forces.
3. Impact on Trade Relations: The act had a significant impact on American trade relations with other countries. The reciprocity clause led to negotiations with some nations, while the high tariff rates strained relations with others.
4. Role in Hawaiian Annexation: The McKinley Tariff played a crucial role in the annexation of Hawaii. The elimination of tariffs on raw sugar imports motivated Hawaiian planters to seek annexation to the United States.
5. Political Repercussions: The McKinley Tariff had significant political repercussions, contributing to the Democratic Party's gains in the 1890 elections and shaping the debate over economic policy for years to come.

The McKinley Tariff Act in APUSH Curriculum

For APUSH (Advanced Placement United States History) students, understanding the McKinley Tariff Act is crucial. It often appears in the context of:

• Industrialization and Economic Change: The McKinley Tariff exemplifies the economic policies of the late 19th century, aimed at promoting industrial growth.
• Political Debates: The tariff highlights the political debates between Republicans and Democrats over the role of government in the economy.
• Populist Movement: The McKinley Tariff contributed to the rise of the Populist movement, which advocated for policies to protect farmers and consumers from the perceived excesses of industrial capitalism.
• Imperialism: The tariff's role in the annexation of Hawaii connects to the broader theme of American imperialism in the late 19th century.

In Conclusion

The McKinley Tariff Act of 1890 was a landmark piece of legislation that had a profound impact on the American economy, politics, and international relations. It represented the high point of protectionist policies in the United States and sparked a national debate about the role of government in the economy. For APUSH students, understanding the McKinley Tariff is essential for grasping the complexities of the late 19th century and its lasting legacy. The tariff serves as a case study of the interplay between economic policy, political ideology, and historical events, and its effects continue to resonate in contemporary discussions about trade, tariffs, and globalization.