Tariff

Definition

A tariff is a tax imposed by a government on imported or exported goods, primarily used to generate revenue and protect domestic industries from foreign competition. In the context of shaping a new republic, tariffs played a significant role in the economic policies of early America, influencing trade relationships and debates about federal power and states' rights.

5 Must Know Facts For Your Next Test

1. The first significant tariff in the United States was the Tariff of 1789, aimed at raising revenue for the federal government while also protecting American manufacturers.
2. Tariffs became a contentious issue in American politics, leading to conflicts between northern states that favored protectionism and southern states that relied on imported goods.
3. The Tariff of Abominations in 1828 was highly controversial, causing widespread resentment in the South and contributing to the Nullification Crisis.
4. During the 19th century, tariffs were used as a tool for economic development, supporting industries like textiles in the North while creating tensions with agricultural regions.
5. The debate over tariffs helped shape political parties and ideologies in early America, influencing the Democratic-Republicans' advocacy for free trade versus the Federalists' support for protective measures.

Review Questions

• How did tariffs impact the relationship between northern and southern states in the early republic?
  • Tariffs significantly affected the economic interests of northern and southern states, leading to political tensions. Northern states, with emerging manufacturing industries, favored tariffs that protected their businesses from foreign competition. Conversely, southern states, which were primarily agricultural and relied on imported goods, opposed high tariffs, viewing them as harmful to their economy. This conflict contributed to sectional divisions that would later escalate into more profound political disagreements.
• Analyze the effects of the Tariff of Abominations on American politics in the early 19th century.
  • The Tariff of Abominations of 1828 had profound implications for American politics. It heightened tensions between the North and South, particularly as southern states viewed it as economically detrimental. The backlash led to the Nullification Crisis, where South Carolina attempted to nullify the tariff within its borders. This situation highlighted the ongoing struggle over federal authority versus states' rights, shaping future political discourse and contributing to the development of distinct regional identities.
• Evaluate how tariff policies during the shaping of the new republic influenced broader economic strategies and political ideologies in America.
  • Tariff policies were central to shaping both economic strategies and political ideologies in early America. Supporters of protectionist tariffs argued they were necessary for nurturing fledgling industries and ensuring national independence from foreign markets. This perspective fostered an emerging economic nationalism that contrasted sharply with advocates of free trade, who emphasized consumer benefits and economic efficiency. These conflicting views laid the groundwork for future political party platforms and debates about government intervention in the economy, influencing American capitalism's trajectory well into the 19th century.

Related terms

Protectionism: An economic policy aimed at shielding domestic industries from foreign competition through tariffs and other trade barriers.

Revenue Tariff: A type of tariff intended primarily to generate income for the government rather than to protect domestic industries.

Trade Balance: The difference between a country's exports and imports, which can be affected by tariff policies.