Trade is messy. Most people think about tariffs as these boring, dusty taxes on the back of a shipping container, but honestly, they’re the reason your sneakers cost what they do and why your grandpa’s favorite steel mill probably closed in the eighties. When people ask what were the tariffs before, they’re usually looking for a simple number. They want to hear "it was 5%" or "it was 20%."
The truth is way more chaotic than that.
For most of American history, we didn't even have an income tax. The government stayed afloat because of tariffs. If you wanted to bring a wool coat from England into New York harbor in 1828, you were looking at a "Tariff of Abominations" that could hit nearly 50%. It nearly started a civil war thirty years early because the South felt like they were getting fleeced to protect Northern factories. Fast forward to the modern era, and the story shifts from "how do we fund the government?" to "how do we stop other countries from out-competing us?"
The Pre-2018 Status Quo: A World of Low Barriers
Before the massive trade shifts of the late 2010s, specifically the 2018-2019 trade war era, the United States was basically a free-trade playground. We had spent decades—since the end of World War II, really—trying to convince the world that lower taxes on imports meant more prosperity for everyone.
By the time 2016 rolled around, the average weighted tariff rate in the U.S. was sitting at a tiny 1.6%. That is incredibly low. To put that in perspective, if you were importing $10,000 worth of computer parts, you might only be paying $160 in duties. It was almost a rounding error for big corporations. This was the era of the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA).
Business was predictable. Supply chains were stretched across the globe because it was cheaper to ship a component five times across the Pacific than to build it in Ohio.
But this wasn't the case for every single item. Even in this "free trade" era, there were weird outliers. Ever heard of the "Chicken Tax"? It’s a 25% tariff on light trucks that dates back to a 1960s spat with Europe over—you guessed it—chicken. It’s still in effect today. That’s why Ford and Chevy don't have much competition from small foreign trucks. So, while the average was low, specific industries were still hiding behind some pretty thick walls.
When Things Got Real: The 2018 Pivot
Everything changed when the U.S. started using Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974. These are essentially the "emergency break" levers of trade policy.
So, what were the tariffs before these specific actions?
Before March 2018, most steel came into the U.S. with very little friction. Then, suddenly, a 25% tariff hit almost all imported steel, and a 10% tariff hit aluminum. This wasn't just about China; it hit our allies in Europe, Canada, and Mexico too. The logic was "national security." If we can't make our own steel, we can't build our own tanks. Whether you agree with that or not, the economic impact was an immediate shock to the system for anyone building cars, appliances, or skyscrapers.
Then came the China-specific tariffs.
This was a staggered rollout. First, it was about $34 billion worth of goods. Then $16 billion. Then $200 billion. By the end of 2019, nearly two-thirds of everything the U.S. bought from China was subject to some kind of extra tax, averaging around 21%.
Before this, China was treated like any other "Most Favored Nation." The shift was tectonic.
Why the "Before" Matters for Your Wallet Today
It’s easy to think this is just a bunch of billionaires arguing over shipping manifests, but it hits your kitchen table. When tariffs were low, inflation stayed remarkably quiet for nearly twenty years. We outsourced the "cost" of labor to other countries and reaped the benefits of cheap consumer goods.
When we look back at what were the tariffs before, we see a period of "Just-in-Time" manufacturing.
- Electronics: Before 2018, your iPhone or laptop moved through borders with almost zero tariff interference.
- Agriculture: Farmers in the Midwest had wide-open access to the Chinese market for soybeans.
- Apparel: Most clothing came from Southeast Asia with predictable, manageable duties.
When those tariffs went up, the "before" times looked like a lost paradise for supply chain managers. Suddenly, a компания (company) like Deere & Co. or Caterpillar had to figure out how to pay 25% more for the raw metal used in their tractors. They didn't just eat that cost. They passed it to the consumer.
The Misconception of Who Actually Pays
There is a huge, nagging myth that the exporting country pays the tariff. Honestly, it’s one of the most misunderstood parts of economics.
If the U.S. puts a 25% tariff on a Chinese-made toaster, the Chinese government doesn't write a check to the U.S. Treasury. The American company importing the toaster pays the tax to U.S. Customs at the border. To keep their profit margins, that American company usually raises the price of the toaster for you.
So, when we talk about what were the tariffs before, we are actually talking about a time when the "hidden tax" on American consumers was much lower.
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Breaking Down the Key Historical Eras
To really understand the context, you have to look at the three big stages of U.S. trade policy. It wasn't always a slow slide toward free trade.
The Protectionist Era (1860s - 1930s)
After the Civil War, the U.S. was basically a fortress. We wanted to build our own industry. The Smoot-Hawley Tariff Act of 1930 was the peak of this. It raised tariffs on over 20,000 goods to record levels. Most economists think this actually made the Great Depression way worse because it killed global trade.
The Liberalization Era (1947 - 2017)
Post-WWII, the world got together and said "never again." They formed the GATT (General Agreement on Tariffs and Trade). This was the long, slow march toward the 1.6% average we saw in 2016. It was the era of the "Washington Consensus"—the idea that free trade stops wars and builds wealth.
The Strategic Competition Era (2018 - Present)
This is where we are now. Tariffs are no longer just about revenue or even just protecting a few jobs. They are used as weapons in a geopolitical chess match. We’ve moved from "free trade" to "fair trade" or "managed trade."
Nuance: Did the Old Tariffs Actually Work?
If you talk to an economist like Paul Krugman, they’ll likely tell you that the low-tariff "before" times were a net positive for the GDP. But if you talk to someone in a "Rust Belt" town in Pennsylvania or Ohio, they might tell you that those low tariffs were a disaster that sucked the life out of their community.
The "before" wasn't perfect. While it made TVs cheap, it also led to the "China Shock." Research by David Autor at MIT suggests that the rapid integration of China into the global trade system led to the loss of about 2.4 million jobs in the U.S. between 1999 and 2011.
So, when asking what were the tariffs before, you also have to ask: who did those tariffs benefit?
- The Consumer: Won big. Cheap stuff.
- The Multinational Corp: Won big. High margins.
- The Factory Worker: Often lost.
The Reality of Section 301 Tariffs
If you're looking for specifics on the most recent "before," look at the four lists of Section 301 tariffs.
List 1 started in July 2018 and hit things like industrial machinery and medical devices.
List 2 followed in August, targeting plastics and semiconductors.
List 3 was the big one in September 2018, hitting furniture, handbags, and seafood.
List 4a hit in late 2019, finally touching consumer electronics and clothing.
Before these lists existed, these categories were mostly at 0% or very low single digits. After, they jumped to 10%, 15%, or 25%. Even with the "Phase One" trade deal, many of these remained in place. Even the Biden administration, which took over in 2021, kept the vast majority of these tariffs, proving that the "before" times aren't coming back anytime soon.
What You Should Do Now: Actionable Insights for the "After" Times
We aren't living in the "before" anymore. The era of ultra-low tariffs is likely over as "de-risking" becomes the new buzzword in Washington and Brussels. If you're a business owner or even just a conscious consumer, here is how to navigate this:
1. Audit your supply chain origin. If you’re buying goods, check where they are actually made. Many companies have moved production from China to Vietnam or Mexico to avoid the 25% hits. This is called "near-shoring" or "friend-shoring." Knowing the country of origin is now a financial necessity, not just a label.
2. Watch the "Exclusion" lists. The U.S. Trade Representative (USTR) often opens windows where companies can apply for an "exclusion" from a tariff if they can prove they can't get the product anywhere else. If you're in business, staying on top of these federal register notices can save you millions.
3. Factor in "Tariff Volatility" for big purchases. Thinking about a major home renovation or buying a fleet of vehicles for your business? Prices are more sensitive to trade news than they were ten years ago. If a new round of tariffs is announced, expect a 3-6 month lag before retail prices jump.
4. Diversify your tech. Since many tariffs now target high-tech components, look for brands that have diversified manufacturing. A laptop assembled in Taiwan or India might have a more stable price point over the next two years than one purely tied to a Chinese supply chain.
The world of what were the tariffs before was a world of simplicity and low costs, but it had its own hidden price tag in the form of lost domestic industry. We’ve traded that for a more expensive, more complicated system that tries to prioritize national security. Whether that’s a good deal depends entirely on whether you’re looking at your paycheck or your receipt at the grocery store.