Civil War Tariffs | U.S. History Review
A tariff is a tax imposed on imported goods. This is done by the government in order to gain funds for products not made in the U.S. The Northern people liked the idea of tariffs; they viewed them as a business strategy that caused other countries to lower the prices of their goods. This was done by the Northerners making the same products domestically and selling them for cheaper prices, thus controlling the foreign prices. The South had a different view. They would sell their cotton internationally and gain credit that they could use to purchase goods from across the world. The tariffs caused that type of international economy to suffer, so the South was not happy. In fact, it led to the Nullification Crisis in which South Carolina decided that no tariffs would be paid in their state, which was in direct opposition to the laws created by the Federal Government. This caused dissension in the U.S. and was one of the leading causes of the Civil War.