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Definition
of
a Tariff
Tariff Definition:
What is a tariff? A Tariff is a tax placed on goods
imported from foreign countries. Tariffs enable a nation
to raise money from these taxes and at the same time
protect a nation's goods from cheaper priced foreign
items.
Tariff of 1832 for kids: History of the Protective Tariffs
The
Tariff of 1832 was the fourth in a series of 'protective' tariffs implemented by
the government.
The protective
tariffs taxed all foreign goods, to boost the sales of US products
and protect manufacturers in the North from cheap British goods. The
1828 Tariff of Abominations was given this name reflecting the
outrage of the Southern states whose
economy was being damaged firstly by having to pay higher prices on
goods the South did not produce, and secondly increased taxes on
British imports made it difficult for Britain to pay for the cotton
they imported from the South. There was also opposition in
New England states because it included the clause by
which the taxes on raw materials were also considerably increased considerably.
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The
Tariff of 1816 placed a 20-25%
tax on all foreign goods
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The Tariff
of 1824 was the second protective tariff. It raised the duties
still higher. There was 35% duty on imported iron, wool, cotton,
and hemp.
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The
Tariff
of 1828 (the Tariff of Abominations) was the third protective
tariff and taxes increased to nearly 50%
These
protectionist tariffs had their origins in the set of economic
policies known as the
Henry Clay
'American System'
Who opposed the
Protective Tariffs?
The
Tariff of 1832 and the Tariff of Abominations was most fiercely opposed by the Southern states
led by South Carolina who contended that
the protectionist tariffs were unconstitutional. Robert Hayne and
John C. Calhoun spearheaded the nullification drive. John C. Calhoun
wrote the
South Carolina Exposition
in 1828 explaining the Nullification Doctrine.
However, as John C. Calhoun was Vice-President, and presided
over the debates of the Senate, the ideas contained in the South
Carolina Exposition document were conveyed in a series of speeches
by Senator Robert Hayne of South Carolina.
In November 1832 a South Carolina
state convention passed an ordinance of nullification on November
24, 1832, declaring that the tariffs of both 1828 and 1832 were
unconstitutional and unenforceable and therefore null and void.
What was the Purpose of the
Tariff of 1832?
The reaction to the 1828 Tariff
of Abominations was so severe that the Tariff of 1832 was passed to
reduce the tax rates in an attempt to resolve the conflict created
by the passage of the bill.
Who drafted the Tariff of 1832?
John
Quincy Adams was made a scapegoat for
the 1828 Tariff of Abominations by his political enemies
and had lost the election to Andrew
Jackson. He remained in politics and was sworn in as a United States
Representative on December 5, 1831, and 7 days later was appointed
chairman of the Committee of Manufactures whose function was to
draft tariff bills. The Tariff of 1832 was therefore largely written
by John Quincy Adams in his role of chairman of the Committee
on Manufactures.
Tariff of 1832 for kids: Significance of the Protective Tariffs
The situation was extremely serious and South Carolina threatened to
secede if the federal government attempted to collect the tariff
duties. This led to the
Nullification Crisis.
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