Walker tariff

The 1846 Walker tariff was a United States Democratic Party-passed bill that reversed the high rates of tariffs imposed by the Whig-backed "Black Tariff" of 1842 under president John Tyler.

The act is named after Robert J. Walker, who was formerly a Democratic Senator from Mississippi and served as Secretary of the Treasury under president James K. Polk. The tariff's reductions coincided with Great Britain's repeal of the Corn Laws earlier that year, leading to a decline in protection in both.

Adoption

Shortly after his election President James K. Polk asserted that the reduction of the "Black Tariff" of 1842 would constitute the first of the "four great measures" that would define his administration. This proposal was intended to be the fulfillment of his campaign pledge in the Kane Letter on tariff policy that contributed to his victory in 1844 over Henry Clay. In 1846 Polk delivered his tariff proposal, designed by Walker, to Congress. Walker urged its adoption in order to increase commerce between the United States and Britain. He also predicted that a reduction in overall tariff rates would stimulate overall trade, and with it imports. The result, asserted Walker, would be a net increase in tax revenue despite a reduction in the rates.

The Democratic-controlled Congress quickly acted on Walker's recommendations. The Walker Tariff bill produced the nation's first standardized tariff by categorizing goods into distinct schedules at identified ad valorem rates rather than assigning individual taxes to imports on a case by case basis. The bill reduced rates across the board on most major import items save luxury goods such as tobacco and alcohol.

Impact

The bill resulted in a moderate reduction in many tariff rates and was considered a success in that it stimulated trade and brought needed revenue into the U.S. Treasury, as well as improved relations with Great Britain that had soured over the Oregon boundary dispute. As Walker predicted, the new tariff stimulated revenue intake from $30 million annually under the Black Tariff in 1845 to almost $45 million annually by 1850. Exports to and imports from Great Britain rose rapidly in 1847 as both countries lowered their tariff barriers against each other.

The 1846 tariff rates initiated a fourteen year period of relative free trade by nineteenth century standards lasting until 1860. It was passed along with a series of financial reforms proposed by Walker including the Warehousing Act of 1846.

The Walker Tariff remained in effect until the Tariff of 1857, which reduced rates further. Both were reversed in 1861 with the adoption of the Republican-backed Morrill Tariff and the return of protectionism.

See also

• Congressional Globe
• Historical Statistics of the United States