Tea Act of 1773
The Tea Act of 1773 was a legislative measure enacted by the British Parliament aimed at aiding the financially struggling East India Company by allowing it to sell tea directly to the American colonies without paying duties in England. This act significantly lowered tea prices in the colonies, yet it maintained a tax of three pence per pound imposed by earlier legislation. The absence of middlemen in the sales process stirred public discontent, as many colonists believed the act undermined their rights and economic interests. As awareness spread regarding the act's implications, colonial merchants, particularly those involved in the smuggling of Dutch tea, expressed strong opposition. The growing resentment culminated in protests led by groups like the Sons of Liberty, who pressured merchants to reject the consignment of British tea. This escalating tension ultimately led to the famous Boston Tea Party, where colonists demonstrated their defiance by dumping tea into Boston Harbor. The Tea Act thus became a catalyst for increasing dissent against British rule, contributing to the larger revolutionary movement in America.
Subject Terms
Tea Act of 1773
The Law British law granting the East India Company a monopoly over the selling of tea in the North American colonies
Date Act passed on May 10, 1773
The passing of the act, coupled with the maintenance of the three-pence American tea tax, suggested that Great Britain felt it had a right to tax the colonists and control the North American market. This early example of trade friction led to greater political and economic discord between the colonies and Britain.
The combination of a tea boycott, competition, and extensive tea smuggling in the American colonies brought the East India Company to the verge of bankruptcy. To rescue the firm, Parliament passed the Tea Act. The law permitted the East India Company to ship tea directly to the colonies without paying duties in England and sell directly to colonial merchants, leaving out the middlemen. This cut the price of tea in America by half. The tax of three pence per pound of tea set by the Townshend Acts of 1767 remained in place.
Many colonists initially thought the duties were eliminated altogether, and the merchants consigned to sell the tea did not enlighten the public. During the summer of 1773, however, as newspapers and pamphlets revealed the true purpose of the Tea Act, public outrage grew. Smugglers of cheaper Dutch tea, such as Boston merchant John Hancock, were particularly angered by the competition. Colonists from the Carolinas to Massachusetts became convinced that the purchase of cheaper, legally imported tea would give sanction to the British government’s right to tax the colonies. The Sons of Liberty in Philadelphia, New York, and Charleston intimidated American merchants into giving up their licenses to sell the tea. Only in Boston did the consignees refuse, thus setting the stage for the Boston Tea Party on December 16, 1773.