Britain has traditionally championed free trade, a position established nearly 200 years ago during the debate over the Corn Laws. These laws imposed high tariffs on imported food to protect landowners but were eventually repealed due to strong opposition from working-class citizens and manufacturers.
The repeal marked a political victory for the Liberal Party and cemented Britain’s commitment to free trade. Throughout the 19th century, this policy contributed to Britain’s economic dominance, and even today, public support for free trade remains strong.
Unlike Britain, the United States has a long history of protectionism. In 1789, Alexander Hamilton, the country’s first treasury secretary, introduced tariffs to protect American industries from foreign competition. This approach remained a central feature of US economic policy throughout the 19th century, allowing domestic industries to grow behind high tariff barriers.
By the late 1800s, American manufacturers had surpassed their British competitors, but protectionism remained deeply ingrained in national policy. The Republican Party, closely aligned with industrial interests, upheld high tariffs, which also provided a major source of government revenue until the introduction of federal income tax in 1913.
Post-WWII Free Trade Shift and Rising Concerns Over Globalization in America
The United States embraced free trade after World War II, but this shift was driven more by political concerns than economic priorities. The Cold War made it essential for the US to support economic recovery in Europe and Japan to counter the influence of communism. At the time, American industry dominated global markets, so allowing more imports carried little risk.
However, by the 1970s, competition from Japanese car manufacturers prompted the US to negotiate voluntary export limits. This signaled growing concerns over trade policy, even as the US continued advocating for economic liberalization worldwide.
Britain’s Free Trade Legacy Clashes with America’s Protectionist Shift in a Changing Global EconomyDespite occasional protectionist measures, the US played a leading role in advancing trade liberalization. Under President Bill Clinton, the World Trade Organization (WTO) was established in 1995 to provide a legal framework for trade negotiations. However, opposition to globalization grew, as seen in the 1999 Seattle protests by labor unions and environmental activists.
A defining moment came in 2001 when China joined the WTO, gaining full access to US and European markets. Over time, China’s growing trade surplus with the US and the decline of American manufacturing jobs fueled concerns that globalization had harmed American workers.
Trump’s Trade Policies and the Growing Shift Toward Protectionism in U.S. Politics
Donald Trump capitalized on these frustrations by advocating for high tariffs, appealing to working-class voters who felt neglected by previous administrations. His policies sought to revive US manufacturing by imposing trade restrictions, particularly on Chinese imports.
While economists debated the effectiveness of these tariffs, they gained strong political support in key swing states. Even after Trump’s presidency, his protectionist influence remained evident, as the Biden administration maintained tariffs on China and introduced subsidies for critical industries. This shift reflects changing political priorities, with skepticism about free trade becoming more widespread in both major parties.
Trade wars carry economic risks, including the potential for a recession, but the US is less reliant on international trade than other major economies such as China, Japan, and the European Union. As a result, the negative effects of protectionist policies are often felt more strongly abroad than within the US. Public opinion on free trade remains divided, with growing support for protectionist measures in certain voter groups.
As the next election approaches, Democrats are expected to focus on domestic economic concerns rather than trade policies. Meanwhile, Britain, with its highly open economy, faces greater exposure to the consequences of a world shifting toward protectionism.