From Hamilton to Trump: Examining the Evolution, Logic and Resurgence of US Tariff Policy

Abstract

Tariff policy, enshrined as a core economic instrument in the US Constitution from the nation's inception, has evolved to profoundly mirror shifts in America's economic structure, political dynamics and national strategy across distinct historical eras. From Alexander Hamilton's ‘protective tariffs’ designed to establish the fledgling republic's fiscal foundations and shield nascent industries, through the 19th-century partisan clashes between Republicans and Democrats over ‘high tariffs’ versus ‘low tariffs’, to the 20th-century rise of free trade ideology and the 21st-century resurgence of tariffs under Donald Trump's ‘America First’ banner, American tariff policy has traversed a complex trajectory marked by spiralling escalation and cyclical oscillations. This paper aims to trace the historical trajectory of American tariff policy from 1789 through Trump's first and second terms, analysing its underlying economic logic and political motivations. It focuses on comparing the similarities and differences between Hamilton's ‘developmental protectionism’ and Trump's ‘confrontational protectionism’, ultimately revealing the enduring role tariff policy has played in America's nation-building and the evolution of its global role.