In 1828, Congress passed a law raising tariffs–which were taxes on imported goods from foreign countries. Tariffs were passed to encourage the growth of US manufacturing. Higher tariffs meant higher prices on imported manufactured goods therefore, people bought American goods over the expensive foreign goods.

Northern states, which had many factories, liked the new tariff law because more American goods were being bought boosting the northern economy. Southerners however, called it the Tariff of Abominations (horrors). Southerners opposed tariffs for several reasons. Tariffs raised the prices they paid for imported goods and also discouraged trade among other nations. Since much of the South’s cotton was exported to other countries, farmers worried that tariffs would hurt cotton sales.

Many southerners also believed that the tariff law was unconstitutional because it only benefited the North, while hurting the South economically. Based on this belief, John C. Calhoun, Andrew Jackson’s vice president, called on southern states to declare the tariff “null and void,” or illegal and not to be followed. South Carolinians even threatened to secede—withdraw their state from the United States—if the national government tried to enforce the tariff laws. South Carolina believed in the idea of states’ rights which was the belief that the states' interests and well being should take precedence (come before/are more important) over the interests of the federal government. Southern states believed they had the right to make and follow their own laws instead of the federal government making laws for them.

1. What was the idea of states rights?

2. What did South Carolina threaten to do if the tariff laws continued?

To prevent southern states from seceding, Henry Clay proposed the Compromise Tariff of 1833 which further lowered tariffs. In the end the government and South Carolina backed down ending the nullification crisis. However, the tension between the North and the South began to increase. Fuel was slowly being added to the fire, an explosion was soon to occur.

3. Who helped bring an end to the Nullification Crisis? With what Compromise?