Tariff

Tariffs show how economic differences became political disputes. Northern manufacturers wanted imported goods to cost more so that American products could compete. Southern plantation owners favoured international free trade.

Governments also tried to protect jobs by encouraging people to buy goods made at home and increasing tariffs on imports. A tariff makes foreign goods more expensive, which can help domestic producers compete. However, when countries restrict imports, other countries lose export markets.

One major weakness was division over Joseph Chamberlain's tariff reform proposals. Tariffs were taxes on imports, intended to protect producers from foreign competition; Chamberlain also wanted to strengthen trade within the Empire. However, free traders within the party opposed the proposals, and voters feared that taxing imported food would make everyday necessities more expensive.