German Tariff

The German Empire, established in 1871, became an industrial powerhouse by 1914. Following an economic boom after unification, Germany experienced a depression starting in 1873. In response, leaders shifted towards a regulated economy, marked by increased industrial concentration and the formation of cartels. A significant change in economic policy occurred in 1878-79 when protective import tariffs were introduced on iron and agricultural grains. This protectionist measure, particularly the high tariffs on grain in 1902, aimed to support domestic industries and agriculture, insulating them from international market fluctuations and solidifying an alliance between landed elites, industrialists, and the military.12