Former President Donald Trump believes the U.S. was at its wealthiest during the late 1800s, particularly from 1870 to 1913. This period, known as the Gilded Age, saw major industrial growth, but it also brought extreme wealth inequality. While industrial giants like John D. Rockefeller and J.P. Morgan thrived, many Americans struggled with poverty and poor working conditions.
Trump has long supported tariffs—taxes on imported goods—as a way to boost the U.S. economy. He admires President William McKinley, who served from 1897 until his assassination in 1901, and was a strong advocate for tariffs. Trump has imposed tariffs on China, steel, aluminum, and European imports, claiming they will strengthen American businesses and reduce the national debt.
However, historians and economists argue that Trump’s view of the Gilded Age is misleading. While the U.S. economy grew rapidly during that time, it was largely due to factors like mass immigration and the exploitation of natural resources, rather than tariffs alone. The period also saw deep economic instability, with financial crises and widespread unemployment.
Trump has suggested that tariffs could replace the federal income tax, which was introduced in 1913. However, this idea faces significant challenges. In 2024, the federal government collected about $4 trillion from income taxes, while tariffs only brought in around $76.4 billion. Experts say tariffs alone could never generate enough revenue to fund the government.
McKinley, whom Trump praises, initially championed high tariffs. However, after winning reelection in 1900, he reconsidered his stance. He realized that for the U.S. to sell more goods internationally, it needed to allow more foreign imports. In a speech in Buffalo in 1901, he promoted “reciprocity”—a policy of mutual trade agreements rather than strict tariffs. Unfortunately, McKinley was assassinated the next day, and his ideas were never fully implemented.
Trump, in contrast, continues to push for high tariffs as a key part of his economic policy. He has hinted at further increasing tariffs on U.S. trade partners and has even suggested extreme ideas like reclaiming the Panama Canal, buying Greenland, and making Canada a U.S. state.
While Trump believes tariffs can restore America’s former economic power, experts caution that today’s global economy is far different from the Gilded Age. Modern trade relies on international supply chains, and excessive tariffs could hurt businesses and consumers rather than help them. Ultimately, Trump’s tariff policies remain a topic of debate, with uncertain long-term effects.
