Question

What was the purpose of the Tariff of 1816? A. to promote imports of foreign goods and boost local businesses B. to purchase foreign goods at a cheaper rate and sell them at a profit C. to make foreign goods more expensive and promote American industry D. to promote agricultural activities and cut down on exports of local goods

Answer 1

The correct answer is C.

The Tariff of 1816 or Dallas Tariff was established aiming to protect US manufactures from the competition exercised by imported items. Previous tariffs had been set to enhance goverment revenue, but in this case the aim changed. The tariff imposed a payment on imported goods so that their margin profit decreased, importers were forced to fix a higher market price for their products and these became less competitive than before, if compared to domestic products that did not have to incur on that extra expense.