Tariffs in 1789

The US used Tariffs to establish the US furniture industry.

From 1620 to 1789, the British Colonies in America had developed a free market economy that allowed individuals to purchase their own land to establish family farms and businesses.

The original 13 colonies were rich in natural resources and had been established to supply goods for export back to Europe, especially tobacco and lumber. Tobacco plantations, logging camps and saw mills were established and merchants secured European buyers.

Europe had depleted its trees and had not replanted to develop a sustainable supply of lumber. Tobacco was a luxury product for the 13 colonies just like sugar and chocolate were luxuries supplied by the French and Spanish colonies in South America.

In 1789, the 13 British colonies became the United States of America and the new government needed to pay off its war debt.  Tariffs were well established as a source of government revenue and the US chose Tariffs as its main source of revenue.

Tariffs were a tax on imported goods. Wealthy colonists had purchased furniture from France and England. The Tariff the US imposed on furniture made their furniture move valuable and created the US furniture industry.

Furniture had been made by individuals, by hand, but the Tariff provided the incentive to establish mills to create furniture factories and concentrate talent.  It didn’t take long for the US furniture factories to create fine furniture.

Norb Leahy, Dunwoody GA Tea Party Leader