USA HISTORY

Detailed explanation-1: -Tariffs were also used for protectionist purposes, benefiting largely northern manufacturing businesses and effectively raising the costs to southern agricultural exporting industries.

Detailed explanation-2: -The establishment of a protective tariff, a 20%–25% tax on imported goods, would protect a nation’s business from foreign competition. Congress passed a tariff in 1816 which made European goods more expensive and encouraged consumers to buy relatively cheap American-made goods.

Detailed explanation-3: -This “System” consisted of three mutually reinforcing parts: a tariff to protect and promote American industry; a national bank to foster commerce; and federal subsidies for roads, canals, and other “internal improvements” to develop profitable markets for agriculture.

Detailed explanation-4: -The Northeast benefited greatly from the American System because industry was beginning to grow in the region and good transportation routes were needed to move products and supplies around.