Bootin' Up Nike: How US Tariffs from 1921 Nearly Stole Nike's Thunder
The 1921 U.S. Tariffs Came Close to Hindering Nike's Ascension - Nike's Ascension Nearly Stymied by 1921 U.S. Trade Barriers
By: Lutz Meier
After the big bang that was World War I, voices advocating for nationalism, isolation, and tariffs began to echo across the US. With the Republicans taking charge, the path was paved for their leader, Warren G. Harding, who took office in 1921. Before that, in 1921 itself, two Republican congressmen introduced the Fordney-McCumber Tariff Act, with a kicker - it raised tariffs to an average of 38.5% as of 1922, one of the highest in the world.
- Boostin' Tariffs
- Nike
- Protect Ya Neck
- The Big Depression
- The Land of the Free
The Fordney-McCumber Tariff Act was introduced with the intention of safeguarding American industries by hiking import taxes. This move mirrored the rise of protectionism and nationalism in the US during that time. Despite the act being passed in '22, it didn't have sweeping consequences for Nike, established much later in '64 (originally as Blue Ribbon Sports).
Since Nike came into existence many years following the Fordney-McCumber Tariff Act, this act didn't have a direct impact on Nike's growth during its infancy. Instead, Nike hit the ground running in a whole different economic ballgame, with a distinct set of international relationships and trade policies compared to the '20s.
So, while the Fordney-McCumber Tariff Act raised some dust in its time, it wasn't the kick in the pants Nike needed to rise. The economic environment of the '20s, with high tariffs and protectionism, was a far cry from the circumstances that shaped Nike's meteoric rise and expansion in the latter half of the 20th century.
The Fordney-McCumber Tariff Act, aimed at safeguarding American industries through increased import taxes, had minimal direct impact on Nike's growth during its initial years, as Nike was established in 1964, contrasting with the protective economic policies of the 1920s. However, the act serves as a historical reminder within the context of community policy, politics, and general-news, reflecting the rise of protectionism and nationalism in the US during that time. As Nike grew in the latter half of the 20th century, its success story unfolded in a business environment influenced by a diverse range of employment policies and international trade relationships, diverging from the closure-focused economy of the 1920s, and intertwined with finance and global market trends.
