Why did Bismarck introduce protective tariffs on iron and grain?

Created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

Otto von Bismarck introduced protective tariffs on iron and grain in 1879 to address the severe economic downturn caused by the worldwide depression of 1873, which had significantly impacted the incomes of industrialists, estate owners, and peasants.123

His decision was driven by several key motives:

  • Economic Protection: The tariffs were designed to shield domestic producers from international competition, specifically protecting the German iron and steel industry to ensure national strength and insulating the Junker estate owners from the influx of cheap American and Russian grain.12
  • Political Strategy: By shifting away from free trade, Bismarck sought to build a new political alliance with conservative parties, effectively breaking his dependence on the National Liberals.12
  • Fiscal Independence: Bismarck aimed to secure customs dues as a source of imperial revenue, which allowed him to reduce the empire's reliance on financial contributions from individual states and avoid the influence of the Reichstag.2
  • Social Conservatism: The policy served to strengthen the landed elite and major industrialists, creating a coalition intended to forestall the rise of social democracy and prevent further political liberalization.13