The history of tariffs stretches back to ancient Rome and Greece, where taxes were levied on imported grain and textiles to control trade.

Listen to a podcast episode that outlines 250 years of world trade history.

Tariffs once fueled the US economy, historically serving as a primary source of revenue and a means to protect domestic industries.

Tariffs are taxes levied on goods imported from abroad.

Policymakers make complex trade-offs when considering tariffs—while they can generate government revenue and encourage the consumption of locally produced goods, they can also lead to higher consumer prices and may negatively impact economic growth.

Revenue from tariffs goes to the US Treasury's general fund.

How do tariffs work?

This brief animated video from Time walks through a simple example of a tariff on a single good, illustrating how this would affect the market for the good—both domestically and abroad—and who would eventually bear the cost of the tariff.

Tariffs are typically paid by the importing company or organization to the US Treasury.

The Tariff Act of 1789 was one of America's first acts.

Death taxes have helped fund wars since the 1860s

Death taxes date back to 700 BCE and were used in Ancient Rome and Ancient Egypt. In the US, they've been used to finance wars since the Civil War, and have been levied on both the estate and beneficiary. The estate tax created during WWI to help finance war efforts is still in effect today.

Read an overview of US tariff policy before the second Trump Administration

This comprehensive report from the Congressional Research Service explores the evolving role of tariffs—from a major source of government revenue to a tool for trade and foreign policy—providing insights into current practices, legal foundations, and global trade dynamics.

See a chart showing how US tariff revenue has grown in recent years.

A trade war is an economic conflict where nations impose tariffs or other trade barriers on each other in retaliation for similar actions.

An economic evaluation of US tariffs

Most economists agree that the implementation of large-scale tariffs on foreign goods would hurt both the American and global economies. This video from The Wall Street Journal explains the rationale for tariffs as a tool for domestic job creation, but explains why they may hurt the overall economy.

Behind the scenes on tariff politics

Economist Gene Grossman joined the Trade Talks Podcast to discuss why tariffs really happen. The episode digs into how voters, politicians, lobbyists, and even campaign cash can affect when protectionist trade policies are put forward. Produced in 2019, the podcast also discusses how populist trade policies and identity politics accounted for Donald Trump’s victory in the 2016 Presidential election.

Track how American tariffs have impacted different countries and industries.

The GATT and its successor, the WTO, were established to lower trade barriers

Signed in 1947, the General Agreement on Tariffs and Trade began systematically reducing tariffs and trade barriers among member nations. In 1995, it was replaced by the World Trade Organization, which expanded those rules and established a formal dispute settlement system.

The Smoot-Hawley Tariff Act—which was passed during the Great Depression with the goal of reviving domestic industry—is among the most famous pieces of economic legislation in US history.

The General Agreement on Tariffs and Trade and its successor, the WTO, was formed to reduce trade barriers between nations.

Global trade volume is roughly 45 times what it was when the General Agreement on Tariffs and Trade was founded

Since 1950, world trade values have grown nearly 410 times, mainly due to the successive tariff reductions negotiated under GATT and the WTO.

The US officially adopted an income tax in 1913

The US first levied income taxes during the Civil War, but modern income taxes became an American fixture in 1913. Two years earlier, Congress passed the 16th Amendment to give the government the right to tax individuals' and businesses' income. The US still technically levies the same federal income tax now as it did then—though it's evolved.

The overall economic effect of President Trump's 2025 tariffs remains unclear

Researchers from UCLA and Yale found that tariff revenue and gains to US producers largely offset importers' costs—but the broader picture is murkier, as the trade deficit rose, manufacturing jobs declined, and 90% of tariff costs were passed through to importers rather than absorbed by foreign exporters.

On July 1, 1862, the agency now known as the Internal Revenue Service was established and named the Bureau of Internal Revenue

It was created to collect the first-ever US income tax, which was created to help pay for the Civil War. After gaining their independence from Britain, Americans were skeptical about giving the federal government absolute power to collect federal income taxes. As a result, early US tax laws dictated that direct taxes, like income taxes, had to be directly apportioned to a state's population. The nation went back and forth on its federal tax laws multiple times. For instance, in 1872, the income tax from the Civil War was repealed. But it was revived in 1894, and then repealed again in 1895. In 1913, Congress passed the 16th Amendment, giving Congress the power to levy income taxes on individuals and corporations without apportioning the burden among the states in line with population, once and for all.

Opposition to British taxes, regulation of trade was key to American independence

The economic situation in the colonies formed the backbone of the central events of the Revolution. British war debts caused it to lay the first direct taxes on colonists, cease their westward expansion claims, and adhere to stringent trade regulations, leading to backlash and eventual separation.

The history of the World Trade Organization

This episode of the "Brettonomics with Nancy Jackson" podcast explores the history of the WTO and its predecessor, the GATT, revealing the key people, negotiations, and decisions that shaped today's international trade rules.

Trump's 2025 tariffs represent a significant break from the rules-based trade order

The Trump administration imposed broad tariffs on other countries outside WTO rules in 2025, claiming that those countries had long violated trade agreements and that the US was simply leveling the playing field.

The 16th Amendment paved the way for capital gains taxes

Ratified in 1913, the 16th Amendment paved the way for a far-reaching federal income tax and supercharged the country’s coffers. Before then, the US depended on import tariffs and so-called consumption taxes to raise revenue.

See comparisons of different countries' taxation strategies

Taxes are a major revenue source for most countries, and how each government taxes citizens often reflects the country's economy. Developed countries tax at much higher rates than developing ones, and as a country grows its GDP, it also typically grows the proportional percentage of taxes it gains from its citizens.

See a collection of ancient Roman coins used on the Silk Roads

As ancient Rome's appetite for eastern luxuries grew, long-distance trade routes linking the Mediterranean to Asia emerged along what became known as the Silk Road. Without shared language or legal systems, merchants could use the reliable Roman coins to exchange with other cultures. This exhibit features gold and silver pieces bearing the portraits of emperors and Latin inscriptions.

The Silk Road was an ancient series of trade routes between East Asia and Europe

Founded by the Han Chinese in 130 BCE, the Silk Road was a series of trade routes connecting eastern China with the Mediterranean and the rest of Europe. The Persians created a predecessor series of routes, but the Chinese solidified the Silk Road, where travelers traded commerce, ideas, and more.

Capital gains taxes were first levied in the US in 1913

However, up until 1921, they were treated the same as ordinary income. Ever since then, rates have swung up and down.

Auto and consumer goods companies absorbed billions in costs due to President Trump's 2025 tariffs.

Over a century ago, fewer than 1% of Americans paid income taxes—but the cost of World War II prompted the federal government to greatly expand the number of people required to pay income taxes.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

The ancient Greeks and Romans were known to take vacations.

The IRS—a division of the US Treasury Department that enforces the Internal Revenue Code, collects taxes, and enforces tax laws—has been a frequent victim of arson over the years.

In ancient Rome, toast was added to drinks

Toasted bread crumbs absorbed the acidity of bitter wine and, in some cases, added flavor. Although the term "toasting" was not yet in use, the practice was common. Some say the Roman Senate decreed in the first century CE that all citizens must drink to the honor of Emperor Augustus before every meal, though scholars debate the validity of that claim. Eventually, the literal toast became associated with the tributes.

Why do long-term capital gains get taxed at preferential rates?

The 1920s defined capital gains as “unearned” taxable income—as opposed to “earned” income from jobs—and set into practice preferential tax rates for long-term capital gains that are hotly debated to this day. This historical review explores how voices in favor of preferential rates were arguing on behalf of greater market liquidity and incentive for investment activity. Learn more about the real history of capital gains tax rates here.

Tax policy can have a direct impact on the national debt, with past presidents' changes to tax codes inflating the deficit.

The Supreme Court ruled in February 2026 that Trump's emergency tariff powers didn't extend to imposing tariffs

In a 6-3 decision, the court held that the International Emergency Economic Powers Act—a 1977 law granting the president authority to regulate commerce during national emergencies—does not authorise the president to unilaterally impose tariffs, a power the Constitution reserves to Congress.

The term 'alcohol' has Arabic origins

Linguistic research reveals a lot about the ancient origins of alcohol. For example, studying various languages reveals that "mead," an alcoholic beverage made from honey, came even before wine.

Britain extracted nearly $45T from India during colonial rule

Between 1765 and 1938, Britain drained an estimated $45T in today’s dollars from India through taxes, resource extraction, and coerced trade—wealth that helped Britain’s economic rise while contributing to widespread poverty in the colony.

How ancient Romans invested and worked

The first stock exchange didn't open for business until the early 1600s, but that didn't stop the Ancient Romans from working and investing their money centuries before. While Romans are better known for their political inventions than their economic ones, understanding how they viewed money can help paint a better picture of the Roman mindset that created systems like democracy. Read this article to learn more.

Near the end of the 1700s, the United States was forced to pay Barbary pirates an annual tribute equal to 16% of its entire budget.

British rule in India wasn’t deliberate—it developed from trade

This academic explainer shows how Britain’s rule in India evolved from unplanned trading footholds to complete imperial control. It examines the decline of the Mughal Empire, economic expansion, racism, rebellion, and the mixed legacy of institutions and exploitation that still shape India today.

Fast fashion companies such as Temu and Shein often took advantage of the de minimis exemption, a US tariff loophole that ended in 2025.

The term 'wedding tax' is often used to refer to the extra money that many wedding industry suppliers charge

According to wedding vendors, the "wedding tax"—the additional money charged for goods and services specifically intended for a wedding rather than another type of event—stems from the increased amount of time and attention that someone like a florist or makeup artist spends on a wedding versus any other type of event. Unlike other events, weddings are often planned a year or more in advance and require more detailed planning and hours of communication.

How the federal income tax affected Prohibition

In the early 1900s, 30% to 40% of government tax revenue came from liquor, wine, and beer, a reliance that made Prohibition seem like a fiscal impossibility. But the passage of the federal income tax in 1913 changed the calculus, which helped allow the government to ban alcohol production and sales.

Tarot cards weren't made for fortune telling

Tarot cards appear to be everywhere today, but their story starts not with fortune-telling, but with a card game for nobles in 15th-century Italy.

A history of Rome and wine

Wine and winemaking were integral parts of everyday Roman life. Wine was used medicinally and for religious rites, as well as for pleasure. It also contributed to the expansion of the Roman empire as wine and grapes were traded throughout the Mediterranean. Roman winemaking practices spread as the empire grew. Without Rome, wine may never have grown into what it became, and vice versa.

The US has carried debt since 1791

After the Revolutionary War, the US owed $75M to nations like France. Debt builds when spending exceeds revenue, funding programs, wars, and economic recovery efforts. Most debt is domestic, like Social Security bonds, with foreign nations also holding a share.