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{{Short description|Historical United States tariff reduction}}
The [[1846]] '''Walker tariff''' was a [[United States Democratic Party|Democratic]] bill that reversed the high rates of [[tariff]]s imposed by the [[Whig Party (United States)|Whig]]-backed "[[Black Tariff]]" of [[1842]] under president [[John Tyler]]. It was one of the lowest tariffs in American history and primarily supported by Southern Democrats who had little industry in their districts.
{{Use American English|date=January 2019}}
{{Use mdy dates|date=January 2019}}


The '''Walker Tariff''' was a set of [[tariff]] rates adopted by the United States in 1846. Enacted by the [[History of the Democratic Party (United States)|Democrats]], it made substantial cuts in the high rates of the "[[Tariff of 1842|Black Tariff]]" of 1842, enacted by the Whigs. It was based on a report by [[United States Secretary of the Treasury|Secretary of the Treasury]] [[Robert J. Walker]].
The act is named after [[Robert J. Walker]], a [[Mississippi]] politician who served as [[Secretary of the Treasury]] under president [[James K. Polk]]. The tariff's reductions (35% to 25%) coincided with [[Britain]]'s repeal of the [[Corn Laws]] earlier that year, leading to a decline in protection in both and an increase in trade.

The Walker Tariff reduced tariff rates from 32% to 25%. Coinciding with Britain's repeal of the [[Corn Laws]], it led to an increase in trade and was one of the lowest tariffs in American history.


==Adoption==
==Adoption==
Democrat [[James Polk]] was [[1844 United States presidential election|elected President in 1844]] over [[Henry Clay]], a [[Whig Party (United States)|Whig]] who advocated a high tariff.
⚫
Shortly after his election, President 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 [[United States Congress|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.


⚫
[[President of the United States|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 [[United States Congress|Congress]]. Walker urged its adoption to increase commerce between the US 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.
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.

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 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.


==Impact==
==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 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 Britain rose rapidly in 1847 as both countries lowered their tariff barriers against each other.
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 dispute]].

⚫
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.<ref>{{cite book|last=Markham|first=Jerry|title=A financial history of the United States|url=https://archive.org/details/financialhistory01mark|url-access=limited|year=2001|volume=3|page=[https://archive.org/details/financialhistory01mark/page/n231 220]}}</ref>

The tariff act of 1842 had a significant impact on railroad building. The duty of $17/ton of hammered bar iron and $25/ton of rolled bar iron raised costs by 50 to 80%. The Walker tariff of 1846 reduced the duty to 30% and set off a railroad building boom in the 1850s.<ref>{{cite journal| last = Murphy| first = Ared Maurice| date = June-September 1925| title = The Big Four Railroad in Indiana| url= https://scholarworks.iu.edu/journals/index.php/imh/article/view/6363/6443| journal = Indiana Magazine of History| volume = xxi| issue = 2 and 3| page = 112| access-date=December 25, 2022}}</ref>


==References==
It was passed along with a series of financial reforms proposed by Walker including the [[Warehousing Act]] of [[1846]].
{{reflist}}
⚫
The 1846 tariff rates initiated a fourteen-year period of relative [[free trade]] by nineteenth century standards lasting until the high [[Morrill Tariff]] signed by [[James Buchanan]] in February 1861.


==Further reading==
⚫
The Walker Tariff remained in effect until the [[Tariff of 1857]], which used it as a base and reduced rates further.
* James, Scott C., and David A. Lake. "The second face of hegemony: Britain's repeal of the Corn Laws and the American Walker Tariff of 1846." ''International Organization'' 43.1 (1989): 1–29. [https://quote.ucsd.edu/lake/files/2014/07/IO-43-1-1989.pdf online]
* Rowe, Christopher. "American society through the prism of the Walker Tariff of 1846." ''Economic Affairs'' 40.2 (2020): 180–197.
⚫
* [https://www.mises.org/etexts/taussig.pdf Taussig, Frank. ''Tariff History of the United States'' (1912)]
* Woodward, G. Thomas. "Revenue Response from a Tax Cut: The Walker Tariff of 1846." ''Proceedings. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association'' Vol. 104. (2011) [https://ntanet.org/wp-content/uploads/proceedings/2011/021-woodward-revenue-response-tax-2011-nta-proceedings.pdf online].


{{James K. Polk}}
==See also==
{{US tax acts}}
⚫
*[http://www.mises.org/etexts/taussig.pdf Taussig, Frank. ''Tariff History of the United States'' (1912) pp 71 ff]
*[http://memory.loc.gov/cgi-bin/ampage?collId=llcg&fileName=017/llcg017.db&recNum=8 Congressional Globe]
*[http://www.lib.umich.edu/help/ts/resources/ushist.html Historical Statistics of the United States]


[[Category:1846 in the United States]]
[[Category:United States federal taxation legislation]]
[[Category:United States federal trade legislation]]
[[Category:United States federal trade legislation]]
[[Category:Presidency of James K. Polk]]

Latest revision as of 22:44, 9 February 2024

The Walker Tariff was a set of tariff rates adopted by the United States in 1846. Enacted by the Democrats, it 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%. Coinciding with Britain's repeal of the Corn Laws, it led to an increase in trade and was one of the lowest tariffs in American history.

Adoption[edit]

Democrat James Polk was elected President in 1844 over Henry Clay, a Whig who advocated a high tariff.

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 to increase commerce between the US 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 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 beverages.

Impact[edit]

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 dispute.

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.[1]

The tariff act of 1842 had a significant impact on railroad building. The duty of $17/ton of hammered bar iron and $25/ton of rolled bar iron raised costs by 50 to 80%. The Walker tariff of 1846 reduced the duty to 30% and set off a railroad building boom in the 1850s.[2]

References[edit]

  1. ^ Markham, Jerry (2001). A financial history of the United States. Vol. 3. p. 220.
  2. ^ Murphy, Ared Maurice (June–September 1925). "The Big Four Railroad in Indiana". Indiana Magazine of History. xxi (2 and 3): 112. Retrieved December 25, 2022.

Further reading[edit]

  • James, Scott C., and David A. Lake. "The second face of hegemony: Britain's repeal of the Corn Laws and the American Walker Tariff of 1846." International Organization 43.1 (1989): 1–29. online
  • Rowe, Christopher. "American society through the prism of the Walker Tariff of 1846." Economic Affairs 40.2 (2020): 180–197.
  • Taussig, Frank. Tariff History of the United States (1912)
  • Woodward, G. Thomas. "Revenue Response from a Tax Cut: The Walker Tariff of 1846." Proceedings. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association Vol. 104. (2011) online.
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