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A tariff setting a 38% tax on imported goods and a 45% tax on some raw materials such as iron. This heavily affected the South.
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Jackson and Calhoun protested the tariff as states supposedly have the right to refuse federal laws.
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Hayne was a nationalist from South Carolina debating that states can reject federal laws against Webster, who argued the opposite.
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South Carolina adopted the Ordinance of Nullification which would nullify the tariff and threatened to secede from the Union.
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This act allowed the president to use military power to enforce laws. This shows how desperate the government was at the time.
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To calm things between the Union and South Carolina, Clay wrote and Calhoun approved a compromise for the gradual reduction of duties.
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South Carolina repealed the Ordinance and agreed to the compromise tariff.