Tariff
A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade. It is a policy that taxes foreign products to encourage or protect domestic industry. It helps limit trade deficits. The tariff is historically used to protect infant industries and to allow import substitution industrialization.
First Report on the Public Credit
A consensus arose in Congress that the primary source of revenue be tariff and tonnage duties. These fees would serve to cover operating expenses for the central government as well as to pay interest and principal on foreign and domestic debt. Under the guidance of Representative James Madison, leader of the House, a tariff act was passed on July 4, 1789.