Tariffs have a long history in the US – two charts tell that story
There’s a chart that’s been doing the rounds in recent weeks – American businessman Marc Andreessen tweeted it, and then it was reposted by Donald Trump himself.
The chart is pretty simple: it shows the proportion of American federal government revenues coming from tariffs, going all the way back to the early days of American independence.
And to glance at, it tells a compelling story. For nearly all of the 19th century, tariffs imposed on goods imported into America provided more than half the government’s revenues.
The president’s interpretation was as follows: “The tariffs, and tariffs alone, created this vast wealth for our country. Then we switched over to income tax. We were never so wealthy as during this period. Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!”
Money blog: New tax rises now ‘a good bet’ for 2025
The first half of his post is quite true. America’s federal economy was largely built on revenues from tariffs. When Alexander Hamilton was designing much of the federal infrastructure, not to mention paying the debts from the War of Independence, he chose to fund it with tariffs and duties on goods imported to the country.
Please use Chrome browser for a more accessible video player
What are ‘Trumponomics’?
Revenue wasn’t the only reason for the tariffs. They were there, too, to protect the country’s nascent industries. But those tariffs were the main source of income for a long time. What changed? Well, from the late 19th century onwards, the size of the American state expanded. Paying for the Civil War was expensive; funding a growing welfare state and national infrastructure in the following decades likewise.
But tariffs can only go so far. There is only so high one can lift these fees before they begin to stifle activity, making goods so expensive to import that domestic consumers face economic damage. That brings us back to the data in the chart approvingly cited by the president.
Take the same numbers and divide them by GDP – the total size of the US economy – another way of skinning it (indeed, the way you’d normally look at long-run historical figures like this). Now everything looks somewhat different. You can see that at no point in American history – even in those early days when tariffs were far higher than today and a far more important source of revenues – did the total amount they raised exceed 6% of gross domestic product. This is not accidental.
It was because tariffs couldn’t raise enough to finance the Federal administration that successive administrations began to collect other taxes on American citizens rather than imports, starting with excise taxes and income taxes in the Civil War. Those taxes, collected by the Internal Revenue Service, ballooned in the following decades – as did the size of the state.
Today the American federal budget is orders of magnitude bigger than two centuries ago (albeit still much smaller than those you find in Europe). The new administration has made it an explicit policy to cut back on waste, led in part by Elon Musk and his DOGE (the Department of Government Efficiency, whose name was seemingly chosen in order to fulfil Mr Musk’s ambition to turn everything into a meme). But there are limits to how far one can cut: a superpower with a large military, vast infrastructure networks such as road and rail, not to mention public health and education systems, does not come for free.
Even so, raising revenue is just one purpose of tariffs. They can also be used as a negotiating tool with other countries (indeed, this might well be their main function in the hands of Mr Trump). They can be used to protect domestic industries against competition.
Whatever the purpose, after decades of relatively free trade around much of the world – most notably America itself – we are living now in an era where tariffs are back. And this story has only just begun.
Les Miserables, what else.
The hit musical about anti-government protest is now showing at the Kennedy Center in Washington DC.
Donald Trump was in the audience for Wednesday’s performance for what amounts to a busman’s holiday.
The narrative explores issues of social justice, love, and the enduring power of human compassion amidst a backdrop of poverty and revolution. Not everyone shares the president’s vision of those themes.
Indeed his presence drew what can only be described as mixed reviews from his fellow theatre goers – cheers and boos in equal measure as he waved from the front row of the circle.
The script of Les Miserables barely presents a break from the day job – Trump won’t be the only one getting a sense of art imitating life, as the real thing plays out on the streets of LA.
It is the first show the president has chosen to attend since he made sweeping changes at the iconic venue, prompting an outcry and accusations that he was politicising art and ‘MAGAfying’ the venerated institution.
According to CNN, a number of Les Miserables cast members had planned to sit out the performance in protest.
The Kennedy Center is a prestigious venue that showcases the best of American performance art.
More than 2,000 shows per year include the famous honours ceremony, an annual event that celebrates artists who have made a significant contribution to US culture.
Honourees through the years have included Joni Mitchell, Aretha Franklin, the Grateful Dead and Francis Ford Coppola.
The Kennedy Center in Washington DC
Following his election in November, Trump made himself chairman of the Kennedy Center’s board and replaced members with political loyalists.
Traditionally, the board has been made up of individuals from across the political spectrum; after his election, Trump got rid of 18 members and replaced them with political soulmates, including his chief of staff Susie Wiles and Fox presenters Laura Ingraham and Maria Bartiromo.
Read more:
Trump responds to Musk’s apology
Riot police enforce LA curfew
Donald Trump signalled a change in artistic direction at the Kennedy Center when he wrote on social media of “Drag shows specifically targeting our youth”, and said of its production schedule: “We didn’t like what they were showing, we’re going to make sure it’s good and it’s not going to be woke.”
His changes prompted a number of acts to cancel shows at the venue in protest. The touring production of Broadway hit Hamilton cancelled dates, as did actor and producer Issa Rae, writer Louise Penny and Pulitzer Prize-winning folk musician Rhiannon Giddens.
👉 Follow Trump100 on your podcast app 👈
Trump’s attendance at the Les Mis performance was designed to boost fundraising, with donors paying up to $2m to attend a reception with the president.
Ticket sales and subscriptions have, reportedly, slumped since Trump’s changes although the centre’s management points out its campaign to renew subscriptions has been launched later this year than last.
Trump watched the performance of Les Miserables from the presidential box, in the company of his wife, Melania.
Vice president JD Vance was also there. When he attended a performance by the National Symphony Orchestra in March with his wife, he was booed by members of the audience.
For the first time in more than 30 years, tanks will roll through the capital of the United States.
The 250th anniversary of the United States Army could see hundreds of thousands descend on Washington DC to watch as 60-ton M1 Abrams battle tanks and Paladin self-propelled howitzers rumble along the streets.
But, like almost everything Donald Trump is involved in, it has not come without controversy or criticism.
It wasn’t originally planned as a birthday celebration – the event had been in the works since before Trump was elected – but earlier this year the President announced his intention to add a massive military parade to the event, which would coincide with his own 79th birthday.
Speaking earlier this week, Trump said it is going to be a “big day”, adding: “We want to show off a little bit.”
Officials have estimated around 200,000 people could turn out, including protesters, plus 6,600 soldiers, 150 vehicles and 50 aircraft.
More than 1,500 ‘No Kings’ demonstrations have also been planned across the US, but the group has said it will not be holding events in Washington DC, in part to avoid a direct confrontation.
It comes as the president warned that any protesters who rain on his military parade “will be met with very big force”.
Does the US typical hold military parades?
Unlike other countries, military parades in the United States are fairly rare, but Trump has made no secret of his desire for one.
The last time such a major display took place in the US it was in 1991, when tanks and thousands of troops paraded through Washington to celebrate the ousting of Iraqi president Saddam Hussein’s army from Kuwait.
Troops march over the Memorial Bridge in Washington DC, as they head towards the Pentagon during the National Victory Day Parade in 1991. Pic: PA
During Trump’s first administration, he ordered the Pentagon to look into holding a display after a visit to France in 2017.
He was seemingly inspired after witnessing the country’s Bastille Day parade, and attempted to plan a Veteran’s Day parade for 2018. However, this was cancelled due to “ridiculously high” cost estimates.
Trump ultimately settled for a display of tanks and other armoured vehicles during a fourth of July celebration, named Salute to America, two years later.
Tanks parade past President Donald Trump, Melania Trump, President Emmanuel Macron and his wife Brigitte Macron in 2017. Pic: AP
What is happening on the day?
Saturday will start with a wreath-laying ceremony in the morning at Arlington National Cemetery, followed by an army birthday festival on the National Mall in DC. The festival will include equipment displays and military demonstrations.
The day will conclude with a military parade throughout the city, overseen by Trump.
After the parade, the US Army Golden Knights team will parachute in and present the president with a flag.
How much will it cost?
All the celebrations will cost the US Army between $25 million (£18.51m) and $45 million (£33.33m), officials told Reuters.
Preparations are underway in Washington DC for the celebrations. Pic: AP
These estimates include costs that will be born by the city of Washington, include litter clean up. The event will involve 18 miles of fencing and 175 metal detectors being installed in the capital.
The military has also begun taking steps to protect the streets from damage caused by heavy tanks, including laying down metal plates in some areas.
The Army said it will pay for any unexpected repairs if needed and has set aside several million dollars in case of damage.
Why is it controversial?
President Trump’s critics have called the parade an authoritarian display of power, that is particularly wasteful as his administration seeks to slash federal spending.
Military vehicles are being transported to Washington DC ahead of this weekend’s parade. Pic: AP
The cost of the Army’s celebration is several million dollars more than it would have been without a parade, officials said.
Among the critics is California Governor Gavin Newsom, who has been trading barbs with Trump since the outbreak of riots in LA.
“And we all know, this Saturday, he’s ordering our American heroes – the United States military – forcing them to put on a vulgar display to celebrate his birthday, just as other failed dictators have done in the past,” he said.
Among the critics is California Governor Gavin Newsom. Pic: AP
“This is his ego and making everything about ‘him’,” Senator Jack Reed, the top democrat on the Senate Armed Services Committee, has also said.
But other officials have pointed out plans for the Army’s 250th birthday began before Trump won the presidential election, and it is not officially an event to mark his birthday – the dates just happen to be the same.
How will it compare to military parades around the world?
One of the criticisms of the parade is that it is a show of military might more often seen in authoritarian countries, such as North Korea, Russia, Iran and China.
This is because tanks in the streets are symbolically associated with these regimes, where they are designed to inspire nationalism and fear, whilst also promoting obedience – they often take place under the watchful eye of their country’s leader.
Russia holds its annual Victory Day parade on 9 May to commemorate the country’s Soviet victory over Nazi Germany. In recent years, it has been used to protect military strength during the Ukraine war.
Red Square during a military parade on Victory Day in 2025. Pic: Reuters
China holds a National Day parade on 1 October every ten years, or on key anniversaries, to celebrate the founding of the People’s Republic in 1949.
Read more:
Why is the president giving babies $1,000?
Elon Musk says he ‘regrets’ Trump posts
Riot police enforce LA curfew
In Iran, an Army Day Parade takes place in April, a month after the country’s Revolution Day celebrations.
North Korea’s 2023 military parade. Pic: AP
North Korea holds parades on key dates like Kim Il-sung’s birthday, or the ruling party’s foundation day. Taking place in the country’s capital of Pyongyang, the display will often feature new weapons, closely watched by leader Kim Jong-un.
But not every country that holds a military parade is necessarily authoritarian.
Pic: MoD
The UK holds its annual Trooping of the Colour every summer to celebrate the birthday of the British Monarch.
One word did the heavy lifting in Marco Rubio’s statement: unilateral.
The US secretary of state was keen to emphasise that strikes on Iran were Israel’s decision alone.
Israel-Iran latest: Iran retaliates after airstrikes
But that was not enough for Iran’s foreign minister, who claimed Israel could not have carried out the attack without support from America.
President Donald Trump had urged Prime Minister Benjamin Netanyahu not to attack Iran.
Please use Chrome browser for a more accessible video player
Israeli PM announces strikes on Iran
The two leaders had what was described as a heated 40-minute exchange by telephone last Monday.
Speaking just hours before the attack, Trump said he feared such action would destroy US hopes of agreement with Iran.
Time and time again, the US president has insisted that Iran cannot have a nuclear weapon.
But the Americans and Iranians have been engaged in negotiations for months as the US president sought a diplomatic solution. At one point, he even appeared to concede slightly on enrichment.
Please use Chrome browser for a more accessible video player
‘They cannot have nuclear weapons’
But Israel claimed the weaponisation of enriched uranium posed “a clear and present danger to Israel’s very survival”.
Netanyahu values his relationship with Trump, but the timing of this action was on Israel’s terms.
Read more:
UK calls for restraint after airstrikes on Iran
Analysis: The moment the Middle East feared
Israel declares emergency over Iran retaliation
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Washington was informed in advance – the president’s national security team watched the strikes in real time in the situation room at the White House.
Afterwards, they said their number one priority was the safety of US personnel.
America had already restricted the movement of its staff in Israel and begun evacuating non-essential staff from its embassy in Baghdad.
Marco Rubio sent a clear warning: “Iran should not target US interests or personnel.”
They don’t want to be dragged into this, but have stated that they will protect Israel, if necessary.
America didn’t choose this moment, but knows the threat this escalation poses for US staff in the region.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut