Cayley-Galt Tariff
Encyclopedia
The Cayley-Galt Tariff of 1858 was the first protective tariff in Canadian
history. It imposed duties on imported manufactured goods of 20% and a duty of 10% on partially manufactured goods in an attempt to spur domestic manufacturing industries.
The tariff caused immediate resentment among both the British
and Americans
. The anger of the Americans played an important role in their 1866 repeal of the Reciprocity Treaty
that had led to free trade
in natural resources. The tariff
was only a foretaste of the much more complete system of protection set up under the National Policy
of 1879.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
history. It imposed duties on imported manufactured goods of 20% and a duty of 10% on partially manufactured goods in an attempt to spur domestic manufacturing industries.
The tariff caused immediate resentment among both the British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and Americans
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The anger of the Americans played an important role in their 1866 repeal of the Reciprocity Treaty
Canadian-American Reciprocity Treaty
The Canadian American Reciprocity Treaty, also known as the Elgin-Marcy Treaty, was a trade treaty between the colonies of British North America and the United States. It covered raw materials and was in effect from 1854 to 1865...
that had led to free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
in natural resources. The tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
was only a foretaste of the much more complete system of protection set up under the National Policy
National Policy
The National Policy was a Canadian economic program introduced by John A. Macdonald's Conservative Party in 1876 and put into action in 1879. It called for high tariffs on imported manufactured items to protect the manufacturing industry...
of 1879.