Anglo‐American trade costs during the first era of globalization: the contribution of a bilateral tariff series†

Abstract Previous scholarship has suggested that British trade was generally unaffected by foreign tariffs during the period from 1870 to 1913. This article focuses specifically on Anglo-American trade, which was the largest bilateral flow of trade during the first era of globalization, and finds that tariffs were the sole intertemporal determinant of Anglo-American trade costs. However, the determinacy of tariffs for Anglo-American trade costs only becomes apparent when the tariff variable incorporates a measure of the bilateral American tariff toward Britain, which this article reconstructs. The article concludes by claiming that Anglo-American trade represents a major qualification to any emerging consensus that foreign tariffs were of minor significance to the trade of late nineteenth-century Britain.