The situation now grew worse instead of better. South Carolina declared the tariff law of 1832 to be null in so far as its operation in that state was concerned. President Jackson, who was determined to enforce the law as long as it remained on the statute books, secured from Congress authority to compel the obedience of the nullifying state. Both sides prepared for the struggle, which seemed inevitable. Just then Clay, whom everybody regarded as the "father" of the protective principle, came forward with a compromise measure in which he sacrificed temporarily for the sake of peace the essential features of protection. The result was the Compromise Tariff of 1833, which provided that all the rates in the Act of 1832 above 20 per cent should be gradually reduced to that level, the final reduction to be made on July 1, 1842.

Consequently, there was no general tariff legislation during the next eight years. In 1841, however, the Whigs came into power pledged to raise the tariff rates as soon as the compromise had run its course. Accordingly, with the guidance of Clay, a Whig Congress passed a protectionist measure, which President Tyler forthwith vetoed. Later (1842) he agreed to a bill similar in character, which is known in the history of the United States as the Whig Tariff of 1842. Three years later the Democrats, on return to power, set about to revise the tariff rates downward. Careful investigations of business conditions were made by Robert J. Walker, secretary of the treasury. With the information secured by Secretary Walker as a basis, Congress enacted the Walker Tariff Act of 1846. This act was free trade in character; it arranged the articles taxed under schedules designated as A, B, C, and so on; and it carried a large free list - that is, imports not taxed. With slight modifications this act continued in force until 1861, when it was superseded by the Morrill Act, which bore higher rates made necessary by a treasury deficit.