Late-medieval Venice used tariffs more wisely than Trump, says historian

U.S. President Donald Trump is not the first global authority to use tariffs as leverage. 

The city of Venice was once a major maritime power, dominating trade in the Mediterranean and imposing duties on foreign merchants. 

But Italian historians say it handled the issue of tariffs in a more careful way.

"Trade was considered the wealth of the city and tariffs had to promote exchange," says Luciano Pezzolo, historian at Venice's Ca' Foscari university. "That's why usually the Venetian government tried to maintain tariffs as low as possible."

Today, Venice not only attracts millions of American visitors each year. The region is also one of Italy's top exporters to the United States, ranking fourth for exported value among Italy's 20 regions. 

Manufacturers of Venetian specialties such as Grappa liquors now fear heavy losses due to Washington's looming tariffs. "We are worried because we have a big number of American customers," Jessie Toffolo at Poli Grappa distillery told CGTN.

The city of canals didn't always get the short end of the stick. Up until the 16th century, Venice dominated maritime trade serving as a hub between east and west. 

At its peak, the city's dominance culminated in a colonial empire that stretched from northern Italy to Crete and at times as far as the Crimea and Cyprus. Venice also maintained merchant colonies in Flanders, Alexandria and Constantinople.

Silk, silver or the most precious spices - for hundreds of years, there was not a cargo passing through Venice without paying duty. 

As much as 70 per cent of the former republic's revenue came from tariffs… But this has little in common with today's international trade conflict. Venice, in fact, considered tariffs a dangerous lever.

"Venice did not wildly use the customs lever because it knew this would endanger the exchange of goods between East and West," Pezzolo told CGTN. "Trump, by choosing the route of duties, risks being very short-sighted. I think it will be the markets that will stop this reckless, insane policy at some point."

And while Venetian merchants continue to worry, the city's tourism industry is more optimistic, hoping tariffs will increase arrival numbers. In fact, higher U.S. prices on Italian goods could motivate more Americans to shop right at the source during a visit to the floating city.