![John C Calhoun-](https://upload.wikimedia.org/wikipedia/commons/5/5b/John_C_Calhoun-.jpg)
The Tariff of 1833 (also known as the Compromise Tariff of 1833, ch. 55, ), enacted on March 2, 1833, was proposed by
Henry Clay
Henry Clay Sr. (April 12, 1777June 29, 1852) was an American attorney and statesman who represented Kentucky in both the U.S. Senate and House of Representatives. He was the seventh House speaker as well as the ninth secretary of state, al ...
and
John C. Calhoun
John Caldwell Calhoun (; March 18, 1782March 31, 1850) was an American statesman and political theorist from South Carolina who held many important positions including being the seventh vice president of the United States from 1825 to 1832. He ...
as a resolution to the
Nullification Crisis. Enacted under
Andrew Jackson
Andrew Jackson (March 15, 1767 – June 8, 1845) was an American lawyer, planter, general, and statesman who served as the seventh president of the United States from 1829 to 1837. Before being elected to the presidency, he gained fame as ...
's presidency, it was adopted to gradually reduce the rates following Southerners' objections to the
protectionism
Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. ...
found in the
Tariff of 1832
The Tariff of 1832 ( 22nd Congress, session 1, ch. 227, , enacted July 14, 1832) was a protectionist tariff in the United States. Enacted under Andrew Jackson's presidency, it was largely written by former President John Quincy Adams, who had ...
and the 1828
Tariff of Abominations
The Tariff of 1828 was a very high protective tariff that became law in the United States in May 1828. It was a bill designed to not pass Congress because it was seen by free trade supporters as hurting both industry and farming, but surprising ...
; the tariffs had prompted South Carolina to threaten
secession
Secession is the withdrawal of a group from a larger entity, especially a political entity, but also from any organization, union or military alliance. Some of the most famous and significant secessions have been: the former Soviet republics le ...
from the Union. This Act stipulated that import taxes would gradually be cut over the next decade until, by 1842, they matched the levels set in the
Tariff of 1816
The Tariff of 1816, also known as the Dallas Tariff, is notable as the first tariff passed by Congress with an explicit function of Protectionism in the United States, protecting U.S. manufactured items from overseas competition. Prior to the W ...
—an average of 20%. The compromise reductions lasted only two months into their final stage before protectionism was reinstated by the
Black Tariff
The Tariff of 1842, or Black Tariff as it became known, was a protectionist tariff schedule adopted in the United States. It reversed the effects of the Compromise Tariff of 1833, which contained a provision that successively lowered the tariff ...
of 1842.
Background
The Tariff of 1828
The Tariff of 1828, enacted on May 19, 1828, was a protective tariff passed by the U.S. Congress. It was the highest tariff in U.S. peacetime history up to that point, enacting a 62% tax on 92% of all imported goods. The goal of the tariff was to protect northern U.S. industries by placing a tax on low-priced imported goods, which had been driving northern industries out of business. Nevertheless, the South strongly resisted the Tariff of 1828 for several reasons. Firstly, they were forced to pay higher prices on goods that the region did not produce, and secondly, the reduced importation of British goods made it difficult for the British to pay for cotton imported from the South. In essence, the South was simultaneously forced to pay more for goods and to face reduced income from sales of raw materials. These unfortunate results caused many in the South to refer to the Tariff of 1828 as the Tariff of Abominations.
Vice-President John C. Calhoun opposed the tariff and anonymously authored a pamphlet called the ''
South Carolina Exposition and Protest
The South Carolina Exposition and Protest, also known as Calhoun's Exposition, was written in December 1828 by John C. Calhoun, then Vice President of the United States under John Quincy Adams and later under Andrew Jackson. Calhoun did not formal ...
'', in when 1828, since many figured the tariff would be reduced.
The Tariff of 1832
Nevertheless, Andrew Jackson's administration did not address the tariff concerns until July 14, 1832, when Jackson signed into law the Tariff of 1832. This tariff, written mostly by former President John Quincy Adams, reduced tariffs to resolve the conflict created by the Tariff of 1828. However, while Northerners essentially saw the tariff as a settlement, many Southerners mostly saw it as unsatisfactory and needing improvement. In particular, the state of South Carolina vehemently opposed the tariff, leading to the
Nullification Crisis.
The Nullification Crisis
Disappointed by the Tariff of Abominations and the Tariff of 1832, the South Carolina government declared that the Tariff of 1828 and the Tariff of 1832 were unconstitutional and therefore unenforceable within the state of South Carolina. Jackson issued the
Proclamation to the People of South Carolina
The Proclamation to the People of South Carolina was written by Edward Livingston and issued by Andrew Jackson on December 10, 1832. Written at the height of the Nullification Crisis, the proclamation directly responds to the Ordinance of Nullific ...
, in which he called the positions of the nullifiers as "impractical absurdity." He provided this concise statement of his belief:
Jackson went on to warn nullifiers that their actions could lead to war:
The state, ready to defend itself from the government, began making military preparations to resist federal enforcement. Meanwhile, Congress passed the
Force Bill
The Force Bill, formally titled "''An Act further to provide for the collection of duties on imports''", (1833), refers to legislation enacted by the 22nd U.S. Congress on March 2, 1833, during the nullification crisis.
Passed by Congress at ...
, which granted Jackson the ability to use whatever force necessary to enforce federal tariffs.
The Tariff of 1833
Shortly after the Force Bill was passed through Congress, Henry Clay and John C. Calhoun proposed The Tariff of 1833, also known as the Compromise Tariff, to resolve the Nullification Crisis. The bill was very similar to the Tariff of 1832, but with a few exceptions. Most importantly, the Tariff of 1833 guaranteed that all tariff rates above 20% would be reduced by one tenth every two years with the final reductions back to 20% coming in 1842. This essentially forced import tariffs to gradually drop over the next decade, pleasing South Carolina and other Southern states that depended on cheap imports.
In addition, the Tariff of 1833 had some other notable impacts. First, it allowed many raw materials used by American industry to be admitted completely free of duty. In addition, it stated that all duties must be paid in cash, with no credit allowed the importing merchant. Some claimed that this was equivalent to an additional 5 percent on tariff rates.
Ultimately, South Carolina and the rest of the United States would accept the Tariff of 1833, and warfare between the South Carolina army and the Union was avoided. Both sides received some benefit from the deal. South Carolina now had a much more agreeable tariff and did not have to risk lives to protect its economy, and the United States government, through the Force Act, was given the power to use force to enforce tariffs.
Many believe that were it not for the Force Act, South Carolina may have continued its Nullification policies because the Force Act gave the United States government the ability to use military force to enforce tariffs and other economic policies, which posed a clear threat to South Carolina. Though the exact impact of the Force Act on South Carolina's decision to accept the Tariff of 1833 cannot be measured, undoubtedly, it made fighting for nullification a potentially devastating choice. Ultimately, the House passed the Tariff of 1833 by a vote of 119–85 and the Senate passed it by a vote of 29–16.
[Peterson, Merrill D. ''The Great Triumvirate: Webster, Clay, and Calhoun'']
Aftermath
The Tariff of 1833 was ultimately abandoned in favor of the Black Tariff of 1842, and protectionism was reinstated. Average tariff rates nearly doubled from the initial 20% target for 1842 to about 40%, and the percentage of dutiable goods jumped from about 50% of all imports to over 85% of all imports. For some goods, such as those made with iron, the import tax constituted about two-thirds of the overall price of the goods. Unsurprisingly, the impact of the Black Tariff of 1842 was immediate; as the cost of imports jumped, a sharp decline in international trade occurred in 1843.
See also
*
Force Bill
The Force Bill, formally titled "''An Act further to provide for the collection of duties on imports''", (1833), refers to legislation enacted by the 22nd U.S. Congress on March 2, 1833, during the nullification crisis.
Passed by Congress at ...
References
{{Andrew Jackson
1833 in American law
1833 in the United States
Nullification crisis
United States federal taxation legislation
1833
Events January–March
* January 3 – Reassertion of British sovereignty over the Falkland Islands (1833), Reassertion of British sovereignty over the Falkland Islands in the South Atlantic.
* February 6 – His Royal Highness Prince Otto ...
March 1833 events
Political compromises in the United States