Colonists in response to the Stamp Act and other taxation measures imposed by the British Government decided to boycott British goods which had a significant impact on the British economy. Therefore Parliament agree to repeal the Stamp Act in 1766 because Colonists' boycotts of British goods were hurting British trade and the economy more broadly.
Parliament repealed the stamp act because the colonists were constantly protesting and causing havoc in the colonies. It was an attempt to stop the protests, but they ironically passed the Declaratory Act a few hours later, which gave congress the right to have complete control of the colonists. These were just a few of the steps that led to the American Revolution.
