Sugar and the Economy

Monopolizing the early sugar trade, Britain profited immensely from the taxes it collected from its American colonies. Later, America’s own government similarly profited. Since 1789 some form of tariff has been placed on sugar to protect domestic refining industries and generate revenue. From 1842 on, policies became protectionist. Because a higher tariff was placed on imported refined sugar than on raw sugar, tariffs bolstered domestic refineries and raw sugar producers. Although the high 30 percent ad valorem tariff lasted from 1846 to 1857 and increased the price of sugar, rates of consumption continued to rise as Americans became more enamored with and needful of the commodity.