USA HISTORY

Detailed explanation-1: -Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise, supporting local industry.

Detailed explanation-2: -Protective tariffs are designed to shield domestic production from foreign competition by raising the price of the imported commodity. Revenue tariffs are designed to obtain revenue rather than to restrict imports.

Detailed explanation-3: -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-4: -Protective tariffs are imposed on imported goods to ensure they are highly-priced compared to domestically produced goods. Protective tariffs discourage individuals or businesses from importing goods because the imported products are less likely to sell when consumers can obtain alternatives at a cheaper price.

Detailed explanation-5: -Tariffs were also used for protectionist purposes, benefiting largely northern manufacturing businesses and effectively raising the costs to southern agricultural exporting industries. Tariffs also spawned corruption and political favoritism for some industries over others.