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.
Tariff of 1832
Enacted on July 13, 1832, this was referred to as a protectionist tariff in the United States. The purpose of this tariff was to act as remedy for the conflict created by the Tariff of 1828. Mainly, the protective Tariff of 1828 was created in such a way that it intended to protect the industry in the north. Because of this, the Tariff of 1828 was also called the Tariff of Abominations by Southern states as it seemed unfair on the part of the government to favor the North by sidelining the south. As compared to the hype created about the protective Tariff of 1832, it proved to be a far cry from fulfilling the demands of the south. Its predecessor pushed the duties on citizens which were as high as 45 percent on the value of specific manufactured goods, while 1832 act brought it down to 35%. For instance, the duty on hemp, which had been $60 a ton in 1828, was reduced to a duty of $40, as a result of compromise Tariff of 1832. Even then southerners were not happy with it. Eventually, their unrest and dissatisfaction was what led to the nullification crisis. Along with that, another bill was passed, Tariff of 1833.