What was a major economic issue during the Nullification Crisis?

The major economic issue during the Nullification Crisis was the federal protective tariffs. These tariffs were designed to promote American manufacturing by taxing imported goods, making them more expensive compared to domestic products. However, many Southern states, particularly South Carolina, felt that these tariffs disproportionately benefited Northern industries at their expense. They argued that the high tariffs led to increased costs for imported goods and limited their economic growth, as the Southern economy was predominantly agrarian and depended on exports.

This economic tension culminated in South Carolina's nullification of the federal tariffs, asserting that individual states had the right to invalidate federal law within their borders. The situation highlighted deep regional divides over economic policy in the early 19th century, as the North and South had different economic interests, which contributed to rising tensions that eventually played a role in the larger conflict leading to the Civil War.