BY THE NUMBERS

By The Numbers, a look at what’s in the news . . . by the numbers. These are just numbers, not suggestions that they mean more or less than what they are. We do not suggest that one number is connected to another. These are simply facts with no extraneous details, bias or slanted reporting. To borrow (and perhaps mangle a bit) a quote from legendary fictional detective Joe Friday, it’s just the numbers, ma’am!

Tariffs, tariffs and more tariffs. There’s no question tariffs have become a political football and seem to be dominating a lot of news headlines. So this week, let’s take a closer look at tariffs . . . by the numbers.

1816

The very first protective U.S. tariff came about in 1816. It happened after the War of 1812 when our friends across the pond in Great Britain began selling goods in our new nation at rates lower than U.S. companies could match.

1824

If the tariff wars did not start in 1816, they certainly did in 1824. That’s when the U.S. increased the tariff, sparking even more debate in Congress. The split wasn’t as much political parties like today as it was geography. Southern states took the position that tariffs were unconstitutional while Northern states favored the tariffs because it helped northern industrial efforts.

1828

The Congressional quarrel over tariffs reached a fever pitch four years later when strategists proposed a tariff so high its opponents called it the Tariff of Abominations. Again, tensions were split on both sides of the Mason-Dixon Line. At the time it was so outrageous no one expected it to pass – but it did.

38%

This Tariff of Abominations wasn’t anything similar to the 60, 80 and 100+ percent tariffs being bandied about. The 1828 tariff was set at 38 percent.

28%

To be sure, there are higher tariffs today – but the U.S. average rate for a tariff is around 28 percent. Still, that’s the highest it’s been since 1901.

$2,100

According to multiple sources, that’s how much higher tariffs cost each household in the U.S. How? Through higher prices. If a company sells products that you buy gets anything from a supplier who has to pay a higher tariff, that supplier typically raises their price to offset the increased cost. The company you buy off of then had to pay a higher price and they likely upped their prices as well.

4

There are four types of tariffs: Anti-dumping, compound, ad valorem and specific. A very brief explanation of each:

• ANTI-DUMPING – Takes on unfair practices
• SPECIFIC – Fixed fees
• AD VALOREM – Based on a percentage of value
• COMPOUND – A combo on ad valorem and specific