Just over a hundred years ago President McKinley introduced the McKinley Tariff Act of 1890 in order to protect U.S. manufacturing. The act raised duties on foreign goods, which made European goods less attractive to the U.S consumer. Although the Wilson Tariff Act of 1894 went some way to redressing the balance, President McKinley again raised duties in 1897 to a higher level than they were in 1890. The tariff system of the United States at the beginning of the 20th Century remained rigidly protective, with rates higher than those of even the most restrictive tariffs of European countries.
Already there are signs that the new President’s ‘America first’ and ‘buy American, hire American’ vision is echoing the McKinley Tariff Act with Trump threatening ‘big border taxes’ on major motor manufacturers if they make cars in Mexico and try to sell them in the United States. Although congress’s Paul Ryan is alleged to have said they would not be raising tariffs, Donald Trump as stated on more than one occasion that companies would face a 35 percent tariff if they ignored his demands.
It’s early days, but if Trump decides to implement those steep tariffs it could have a negative effect on Yorkshire and the UK’s export market.
Will Trump's 'America First' Policy Affect UK Trade & Exporting?
- Yes - Trump will negatively impact UK trade (35%)
- Yes - Trump will positively impact UK trade (35%)
- No - Trump will have no impact on UK trade (30%)