USA HISTORY

Detailed explanation-1: -The Democrats’ hypothesis stated that tariff revenue could be reduced by reducing the tariff rate. Conversely, the Republicans’ belief was that by increasing the tariff, imports would be lessened, and total tariff revenue would drop. The debate would be known as the Great Tariff Debate of 1888.

Detailed explanation-2: -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-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: -In the late 19th and early 20th century, tariff policy became one of the defining political issues; generally, the Republican Party favored high tariffs to protect domestic manufacturing and agriculture from low-cost foreign competition, while the Democratic Party favored low tariffs to promote trade and boost exports.