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Tariff Act of 1879

The Tariff Act of 1879 was Canadian legislation that raised duties on imported goods to protect domestic industry. In History of Canada after 1867, it is a core part of John A. Macdonald’s National Policy.

Last updated July 2026•Fiveable Content Team

What is the Tariff Act of 1879?

The Tariff Act of 1879 is the piece of Canadian legislation that put the National Policy’s protectionist economic plan into action. It raised duties on many imported manufactured goods so that foreign products cost more at the border and Canadian-made goods could compete more easily at home.

In the context of History of Canada after 1867, this was not just a tax law. It was a nation-building tool. Prime Minister John A. Macdonald and his government wanted a stronger domestic economy in a country that was still young, sparsely populated, and heavily dependent on trade outside its own borders. The tariff was meant to push consumers and businesses toward Canadian production instead of relying so much on imports from the United States or Britain.

The logic behind the act was straightforward. If imported goods became more expensive, Canadian factories would have a better chance of selling their own products. That could encourage industrial growth, create jobs, and give the federal government another source of revenue. That revenue could then support other National Policy goals, including railroad building and wider economic development.

The Tariff Act also fit into a bigger idea called economic nationalism. The government was not trying to create free-market competition with low barriers. It was trying to shape the economy by favoring Canadian production and making the country more self-sufficient. That makes the act a useful example of how governments can use policy to steer development, not just collect taxes.

The trade-off was that protectionism did not help everyone equally. Manufacturers and some workers could benefit, but consumers often paid higher prices and had fewer cheap imported options. So when you see the Tariff Act of 1879 in a history question, think about both sides of the policy: growth for industry on one side, higher costs and limited choice on the other.

Why the Tariff Act of 1879 matters in History of Canada – 1867 to Present

This term matters because it shows how the National Policy worked in real life, not just as an idea on paper. The Tariff Act of 1879 connects government power, industrial growth, and nation-building in the early decades after Confederation.

It also helps you explain one of the main tensions in Canadian economic history: should the country open itself to competition and cheap imports, or protect local production so domestic industry can grow? That same tension shows up later in debates about trade, manufacturing, and regional development.

The act is especially useful when you are writing about why Canada developed unevenly. Tariffs could help factories and federal revenue, but they could also raise prices for ordinary buyers and benefit some regions more than others. In that way, the law is not just an economic detail. It is evidence of how Macdonald’s government tried to build a stronger country through policy choices, and how those choices affected people differently across Canada.

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How the Tariff Act of 1879 connects across the course

National Policy

The Tariff Act of 1879 is one of the clearest expressions of the National Policy. The policy had three main parts, and tariffs were the piece that directly protected Canadian manufacturing. If you understand the act, you can explain how the federal government tried to use economic policy to build a more self-sufficient country after Confederation.

Protectionism

Protectionism is the economic idea behind the Tariff Act of 1879. Instead of keeping imports cheap, the government raised duties so Canadian businesses would have an advantage at home. That connection matters when you compare protectionist policy to free trade, because the act shows exactly how tariffs can be used to shield domestic industry.

Free Trade

Free trade is the main contrast to the Tariff Act of 1879. A free-trade approach would lower barriers and let imported goods compete more easily on price. The tariff moved Canada in the opposite direction, so it is a good reference point for essays or discussions about why governments choose protection over open competition.

economic nationalism

The Tariff Act of 1879 reflects economic nationalism because it tried to strengthen the Canadian economy by favoring Canadian production. Instead of depending so heavily on outside markets, the government wanted more internal growth, more factories, and more revenue at home. That makes the act a concrete example of economic nationalism in practice.

Is the Tariff Act of 1879 on the History of Canada – 1867 to Present exam?

A quiz question might ask you to identify what the Tariff Act of 1879 did, and the safe answer is that it raised import duties to protect Canadian industry under the National Policy. In an essay, you would usually use it as evidence when explaining how John A. Macdonald’s government tried to build a stronger national economy after Confederation.

You might also be asked to compare winners and losers. That means naming manufacturers and the federal government as likely beneficiaries, then explaining that consumers often faced higher prices. If a prompt asks about economic development, the tariff is a strong example of how policy was used to encourage industrial growth, raise revenue, and support other projects like rail expansion.

The Tariff Act of 1879 vs Free Trade

These are often confused because both deal with imports and trade policy, but they point in opposite directions. The Tariff Act of 1879 raised barriers to protect Canadian industry, while free trade lowers barriers and makes foreign goods easier to buy. If a question asks which one the National Policy used, it is the tariff, not free trade.

Key things to remember about the Tariff Act of 1879

  • The Tariff Act of 1879 raised duties on imported goods in Canada so domestic manufacturers could compete more easily.

  • It was a major part of John A. Macdonald’s National Policy, which aimed to build a stronger and more self-sufficient Canadian economy.

  • The act supported industrial growth and brought in federal revenue, which could help fund railways and other development projects.

  • The policy also had downsides, especially higher consumer prices and fewer cheap imported choices for buyers.

  • If you see this term in a history question, connect it to protectionism, economic nationalism, and the broader push to build Canada after Confederation.

Frequently asked questions about the Tariff Act of 1879

What is the Tariff Act of 1879 in History of Canada after 1867?

It was a Canadian law that raised taxes on imported goods to protect domestic industry. In the post-Confederation period, it is best understood as part of John A. Macdonald’s National Policy. The act helped the federal government support Canadian manufacturing and collect revenue.

How did the Tariff Act of 1879 affect Canadian consumers?

It often made imported goods more expensive, which meant consumers could face higher prices and fewer low-cost options. That was the trade-off of protectionism. The policy was designed to help Canadian producers first, not to give shoppers the cheapest possible imports.

Why was the Tariff Act of 1879 part of the National Policy?

Because the National Policy was built around protective tariffs, railroad expansion, and western settlement. The tariff was the economic side of that plan. It was meant to encourage Canadian manufacturing, create jobs, and help Canada rely less on foreign goods.

Is the Tariff Act of 1879 the same as free trade?

No. It is basically the opposite of free trade. Free trade lowers barriers to imports, while the Tariff Act of 1879 raised them to protect Canadian industry. That contrast is a common way teachers check whether you understand trade policy in this period.