Term:
Commercial Compromise
(scroll down for
Definition)
Definition:
Commercial Compromise
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.
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