Definition: Commercial Compromise and Commerce Clause

The Northern states wanted a tax on imports and exports.

The Southern states wanted a tax on imports, but not exports, as they exported a lot of farm goods.                                                                                       

The compromise gave the federal government the power to tax imports but not exports. This tax on imports is referred to as a tariff. Sometimes the term customs-duties is used instead.

Such regulation of trade can be found in the Commerce Clause, where Congress is given the power to regulate commerce between the states, with foreign nations, and with Native American tribes. Controlling interstate commerce is a major component of federalism (explained this chapter).

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