President Donald Trump has brought a historical figure to the forefront in recent months: William McKinley, the 25th president of the United States.
McKinley, who was president between 1897 and 1901, famously authored the highly protectionist Tariff Act of 1890, later named after him, which imposed over 50% tariffs on many imported goods.
President Trump has name-dropped McKinley multiple times. During the 2024 campaign, Trump repeatedly lauded McKinley’s tariff policies, crediting them for making America a “very wealthy country.”
“In the 1890s, our country was probably the wealthiest it ever was because it was a system of tariffs,” Trump said in a Michigan town hall in September. “We had a president, you know McKinley?”
Since returning to the White House, Trump has enacted his own aggressive tariffs, including 25% tariffs on all steel and aluminum imports and a 10% tariff on imports from China. Earlier this month, he also imposed a 25% tariff on most items from Canada and Mexico, but later delayed those tariffs for 30 days.
McKinley’s tariff policies, which were rolled out when he was a congressman, had far-reaching impact on the economy, and were ultimately widely unpopular among voters, leading him and other Republican congressmen to lose their seats in the 1890 midterms. Even McKinley himself changed his mind on foreign trade by the time he became president.
“This was protectionist at its height,” William K. Bolt, a professor of history at Francis Marion University, told Business Insider of McKinley’s original policy. “And there was a significant political backlash against it.”
Photos from the late 19th century and early 20th century highlight the economic factors that led to McKinley’s tariffs, how they changed day-to-day life for Americans, and what ultimately led to him backtracking on his policies.
Warren Buffett is one of the world’s most legendary investors. So, what does he think of tariffs and how they’ll affect the economy?
The billionaire chairman and CEO of Berkshire Hathaway says tariffs are “an act of war, to some degree.”
“Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” he said in an interview with “CBS News Sunday Morning” when asked how tariffs would impact inflation. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”
When asked about the current economy, Buffett said: “Well, I think that’s the most interesting subject in the world, but I won’t talk, I can’t talk about it, though. I really can’t.” He also didn’t answer further questions about politics.
The 94-year-old, known as the Oracle of Omaha, added that “a majority of any money I manage will always be in the United States” because “it’s the best place.”
Since taking office, President Donald Trump has announced or threatened tariffs against several countries. Economists have warned that the US imposing tariffs would likely hurt the domestic economy and that additional costs would likely be passed on to the American consumer rather than to foreign exporters.
Trump proposed 25% tariffs on Mexico and Canada that were initially supposed to take effect in February but were postponed. They are now expected to start Tuesday, though Commerce Secretary Howard Lutnick said they may not be at a 25% rate.
After placing a 10% tariff on goods from China last month, Trump announced on Thursday he’d impose another 10% tariff on the country, saying it hasn’t done enough to stop fentanyl from entering the US.
Trump also announced a 25% tariff on all steel and aluminum imports to the US, which is set to take effect on March 12.
He said last month that he’d charge “a reciprocal tariff” on countries that have such taxes on American goods.
He’s also threatened to impose a 25% tariff on European Union countries and said he’d slap a 100% tariff on BRICS nations if they replaced the US dollar as their reserve currency.
Buffett has supported presidential candidates in the past, including backing Barack Obama and Hillary Clinton, but he declined to make an endorsement in the 2024 election.
“I’m worried about people impersonating me and that’s why we put that on the Berkshire website,” Buffett told CNBC about his decision not to endorse last year. “Nobody should believe anybody saying I’m telling them how to invest or how to vote.”
|Business Insider