The Payne–Aldrich Tariff Act emerged from the ongoing tensions between protectionist and free trade factions within the United States. Introduced in early 1909 during the presidency of William Howard Taft, the act sought to revise the Dingley Tariff of 1897, which had imposed high tariffs on a wide range of goods. While President Taft campaigned on a platform of tariff reform, the resulting legislation disappointed many progressives who expected substantial reforms to foster free trade. The legislation was characterized by its mixed approach, slightly reducing or raising tariffs on different products, without a clear overarching direction. This led to significant discontent among groups who were proactively seeking higher reductions in tariff rates across the board.

The act was primarily sponsored by Congressman Sereno E. Payne and Senator Nelson Aldrich, who played pivotal roles in shaping the final text. They faced pressure from both business interests advocating for protection against foreign competition and progressives pushing for increased free trade. The act culminated in a series of debates and negotiations that reflected this broader conflict within the Republican Party, ultimately leading to its passage in April. The differences in opinion among lawmakers foreshadowed deeper fractures on economic policy within the party itself, indicating the beginning of a rift that would eventually contribute to the political landscape of the ensuing decades.