Slide 1U.S. Tariff Policies Before 1930U.S. Tariff Policies Before 1930U.S. Tariff Policies Before 1930U.S. Tariff Policies Before 1930U.S. Tariff Policies Before 1930U.S. Tariff Policies Before 1930U.S. tariff history: average tariff ratesSmoot-Hawley ActSmoot-Hawley ActSlide 11Smoot-Hawley ActReciprocal Trade Agreements ActReciprocal Trade Agreements ActReciprocal Trade Agreements ActGeneral Agreement on Tariffs and TradeGeneral Agreement on Tariffs and TradeGeneral Agreement on Tariffs and TradeSlide 19GATT negotiating roundsSlide 21World Trade OrganizationWorld Trade OrganizationWorld Trade OrganizationWorld Trade OrganizationWorld Trade OrganizationWorld Trade OrganizationWorld Trade OrganizationBurning rubber: Obama’s tire tariff ignites Chinese officialsBurning rubber: Obama’s tire tariff ignites Chinese officialsFrom Doha To Hong Kong: Failed Trade NegotiationsTrade Promotion AuthorityTrade Promotion AuthoritySafeguards: Emergency Protection From ImportsTrade remedy law provisionsSlide 36Safeguards: Emergency Protection From ImportsSlide 38Slide 39Antidumping Duties: Protection Against Foreign DumpingAntidumping Duties: Protection Against Foreign DumpingEffects of dumped and subsidized imports and their remediesAntidumping Duties: Protection Against Foreign DumpingSection 301: Protection Against Unfair Trading PracticesSlide 45Protection of Intellectual Property RightsProtection of Intellectual Property RightsExamples of intellectual property right violations in ChinaTrade Adjustment AssistanceTrade Adjustment AssistanceSlide 51Slide 52Slide 53Slide 54Industrial Policies of the United StatesIndustrial Policies of the United StatesIndustrial Policies of the United StatesIndustrial Policies of the United StatesIndustrial Policies of the United StatesSlide 60Industrial Policies of the United StatesIndustrial Policies of JapanIndustrial Policies of JapanIndustrial Policies of JapanIndustrial Policies of JapanStrategic Trade PolicyEffects of a European subsidy granted to AirbusStrategic Trade PolicyStrategic Trade PolicyEconomic SanctionsEconomic SanctionsSelected economic sanctions of the U.S.Economic SanctionsEffects of economic sanctionsEconomic SanctionsDo automaker subsidies weaken the WTO?Do automaker subsidies weaken the WTO?Do automaker subsidies weaken the WTO?Trade Regulations andIndustrial Policies© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐1PowerPoint slides prepared by:Andreea ChiritescuEastern Illinois UniversityU.S. Tariff Policies Before 1930•The revenue argument•Dominant motive behind the early tariff laws of the United States•First tariff law, 1789•Followed by 12 more tariff laws by 1812•Today, tariffs collected by the federal government = 1% of total federal revenues© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐2U.S. Tariff Policies Before 1930•The protective argument •1791, Alexander Hamilton, “Report on Manufacturers” •Young industries of the United States be granted import protection until they could grow and prosper•The infant industry argument•By the 1820s protectionist sentiments in the United States were well established© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐3U.S. Tariff Policies Before 1930•The protective argument •1828 , Tariff of Abominations, 45% duties•Provoked the South - wanted low duties for its imported manufactured goods•Compromise Tariff of 1833•Downsizing of the tariff protection afforded U.S. manufacturers© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐4U.S. Tariff Policies Before 1930•1840s and 1850s, U.S. government•Excess of tax receipts over expenditures•Walker tariffs, 23%•To eliminate the budget surplus•Further tariff cuts, 1857, 16%•Civil War era•Morill Tariffs of 1861, 1862, and 1864•Means of paying for the Civil War© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐5U.S. Tariff Policies Before 1930•Late 1800s, cheap foreign labor argument•McKinley and Dingley Tariffs•1897, tariffs of 46%•Payne-Aldrich Tariff of 1909•Turning point against rising protectionism•Underwood Tariff of 1913•Reduced duties to 27%© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐6U.S. Tariff Policies Before 1930•World War I•Protectionist pressures built up •Early 1920s, scientific tariff concept•1922, Fordney-McCumber Tariff •Tariff rates 38%© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐7© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password protected website for classroom use‐8U.S. tariff history: average tariff ratesTABLE 6.1Smoot-Hawley Act•Smoot-Hawley Act, 1930•Average tariffs of 53%•Tried to divert national demand away from imports and toward domestically produced goods•Retaliation by 25 trading partners of the U.S.•Several nations tried to run a trade surplus by reducing imports•Breakdown of the