The history of tariffs

The topic of "tariffs" has been the main subject of conversation in almost every single corner of the world ever since President Donald Trump announced early in March that he would be imposing heftier tariffs on Canada and Mexico.

- AMBASSADOR B. ROMUALDEZ

On April 2, when the US president delivered his "Liberation Day" speech at the White House Rose Garden, "tariffs" became the trending buzz word worldwide as he declared America's "economic independence" and announced wide-ranging reciprocal tariffs on almost every country.

In a stunning dramatic announcement, the US president declared a 90-day pause for many countries because they apparently reached out and signified willingness to discuss the issues except for China that was slapped with a 125 percent tariff for its goods. Analysts and experts have been giving their differing perspectives regarding the impact of President Trump's decisions on the global economy and implications concerning trade relations.

But what exactly is the history of tariffs, and how did the term come about? Several articles have since been written about this topic, including one from npr.org that traces it to the Arabic "ta'rif" that means "notification" or "inventory."

According to an article in Shapiro (a supply chain logistics company specializing in international freight forwarding and other services), tariffs is "a concept as old as the Silk Road and as dynamic as today's global trade networks. Tariffs have long been the tools of choice for nations wanting to sway trade dynamics, defend domestic industries or even engage in the occasional economic skirmish."

Saying tariffs are beyond just another line item on imported goods, Shapiro explains that these customs duties are "financial instruments with the power to sculpt economic landscapes" and that by imposing such, countries can "protect their local industries from overseas competition," among other things.