The Nullification Crisis occurred in 1833 when South Carolina leaders took the radical step of nullifying federal tariffs in their state on 1 February 1833.
The nullification movement started in response to the Tariff of Abominations in 1828, and South Carolinian politicians, led by John C. Calhoun, formed the Nullifier Party and argued that states had the right to nullify federal policies. Tax revisions in 1832 brought very little relief to the American South, leading to the nullification in 1833.
President Andrew Jackson sent armed ships to Charleston harbor and threatened to invade the state, and the US Congress passed the Force Bill, declaring South Carolina as being in a state of treason, and authorizing military action to collect federal tariffs. At the same time, the Congress sought to pass a revised tariff bill, with the conciliating US Senator Henry Clay rallying support for a moderate bill which reduced tariffs down to the 1816 level. On 1 March 1833, Congress passed both the new tariff and the Force Bill, so South Carolina withdrew its nullification of the old tariff and nullified the Force Bill. Both sides were satisfied, as federal power had prevailed over states' rights, and South Carolina succeeded in getting the lower tariff.