- Tariff of 1842
The Tariff of 1842, or Black Tariff as it became known, was a protectionist
tariffschedule adopted in the United States to reverse the effects of the Compromise Tariffof 1833. The Compromise Tariff contained a provision that successively lowered the tariff rates from their level under the Tariff of 1832over a period of ten years until the majority of dutiable goods were to be taxed at 20%. As the 20% level approached in 1842, industrial interests and members of the Whig Party began clamoring for protection, claiming that the reductions left them vulnerable to European competition. The bill restored protection and raised average tariff rates to almost 40%.
The bill stipulated sweeping changes to the tariff schedule and collection system, most of which were designed to augment its protective character. The law replaced most
ad valoremrates with specific duties assessed on a good-by-good basis. It also repealed the credit system of tariff finance and replaced it with a cash payment system, collected at portside customs houses.
The Black Tariff was signed into law somewhat reluctantly by President
John Tylerfollowing a year of disputes with the Whig leaders in Congress over the restoration of national banking and the government's land disbursement policies. For the previous year, Whig leaders in Congress had sent bills to Tyler coupling the tariff hike with a public land disbursement package insisted upon by Henry Clay, prompting a presidential veto.
In the summer of 1842 representatives from the northeastern manufacturing states began feeling electoral pressures for a tariff hike before the elections that fall and abandoned Clay's land disbursement program. The resulting bill contained the tariff hike alone that satisfied the manufacturers and was acceptable to Tyler since it lacked the land disbursement provisions. The main beneficiary industry to receive protection under the tariff was iron. Import taxes on iron goods, both raw and manufactured, amounted to almost two thirds of their price overall and exceeded 100% on many items such as nails and hoop iron. The law also raised the percentage of dutiable goods from just over 50% of all imports to over 85% of all imports.
The impact of the 1842 tariff was felt almost immediately through a sharp decline in international trade in 1843. Imports into the United States nearly halved from their 1842 levels and exports, which are affected by overall trade patterns, dropped by approximately 20%.
The Tariff of 1842 was repealed in
1846when it was replaced by the Walker Tariff. The Whigs' loss of Congress and the presidency in 1844 facilitated a Democratic-led effort to reduce the rates again. Concerns that the Black Tariff's high rates would suppress future trade and customs revenue with it fueled the movement to repeal the act.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Tariff of 1833 — Speaker of the House Henry Clay Vice … Wikipedia
Tariff — For other uses, see Tariff (disambiguation). Taxation An aspect of fiscal policy … Wikipedia
tariff — tariffless, adj. /tar if/, n. 1. an official list or table showing the duties or customs imposed by a government on imports or exports. 2. the schedule or system of duties so imposed. 3. any duty or rate of duty in such a list or schedule. 4. any … Universalium
Tariff of 1883 — In United States tax law history, the Tariff of 1883 (signed into law on March 3rd, 1883), also known as the Mongrel Tariff Act by its critics, reduced high tariff rates only marginally, and left in place fairly strong protectionist barriers.… … Wikipedia
Tariff of 1790 — In 1790, Alexander Hamilton, the secretary of the treasury, calculated that the United States required $3 million a year for operating expenses as well as enough revenue to repay the estimated $75 million in foreign and domestic debt. Under the… … Wikipedia
Tariff — BL Increased in 1841, 99; and 1842, 147; on agricultural products, and live stock, 189; Act of 1849, 292, 302 … The makers of Canada
Morrill Tariff — The Morrill Tariff of 1861 was a protective tariff in the United States, adopted on March 2, 1861 during the administration of President James Buchanan. Named for its sponsor, Representative Justin Smith Morrill of Vermont, who drafted it with… … Wikipedia
Dallas tariff — The United States passed the Tariff of 1816 and enforced it between 1816 and 1824. Introduced following a report from Secretary of the Treasury Alexander J. Dallas and adopted by the Fourteenth Congress, the tariff was staunchly supported by… … Wikipedia
Walker tariff — The 1846 Walker tariff was a Democratic bill that reversed the high rates of tariffs imposed by the Whig backed Black Tariff of 1842 under president John Tyler. It was one of the lowest tariffs in American history and primarily supported by… … Wikipedia
McKinley Tariff — The Tariff Act of 1890, commonly called the McKinley Tariff, was an act framed by Representative William McKinley that became law on October 1, 1890. The tariff raised the average duty on imports to almost fifty percent, an act designed to… … Wikipedia