Tariff
In contrast, in economic theory tariffs are viewed as a primary element in international trade with the function of the tariff being to influence the flow of trade by lowering or raising the price of targeted goods to create what amounts to an artificial competitive advantage. When tariffs are viewed and used in this fashion, they are addressing the country's and the competitors' respective economic healths in terms of maximizing or minimizing revenue flow rather than in terms of the ability to generate and maintain a competitive advantage which is the source of the revenue. As a result, the impact of the tariffs on the economic health of the country are at best minimal but often are counter-productive.
1912 United States presidential election
Before the ratification of the Sixteenth Amendment to the United States Constitution (1913), the funding of the United States government heavily relied upon tariffs. Tariffs are a direct taxation of raw materials and manufactured goods with regard to trade. This issue was key in fracturing the Republican Party. Early in his term, President Taft had promised to stand for a lower tariff bill. Protectionism was major policy of the business oriented Republican Party.