Tea Act - Definition, Timeline & Facts | HISTORY By: HISTORY.com Editors American Revolution Tea Act HISTORY.com Editors The Print Collector/Getty ImagesPublished: November 09, 2009Last Updated: May 28, 2025 Table of contents 1 Crisis in Britain 2 Saving the East India Company 3 The Destruction of the Tea 4 The Coercive Acts and American Independence Table of contents The Tea Act of 1773 was one of several measures imposed on the American colonists by the heavily indebted British government in the decade leading up to the American Revolutionary War (1775-83). The act’s main purpose was not to raise revenue from the colonies but to bail out the floundering East India Company, a key actor in the British economy. The British government granted the company a monopoly on the importation and sale of tea in the colonies. The colonists had never accepted the constitutionality of the duty on tea, and the Tea Act rekindled their opposition to it. Their resistance culminated in the Boston Tea Party on December 16, 1773, in which colonists boarded East India Company ships and dumped their loads of tea overboard. Parliament responded with a series of harsh measures intended to stifle colonial resistance to British rule; two years later the war began. Crisis in Britain In 1763, the British Empire emerged as the victor of the Seven Years’ War (1756-63). Although the victory greatly expanded the empire’s imperial holdings, it also left it with a massive national debt, and the British government looked to its North American colonies as an untapped source of revenue. In 1765, the British Parliament passed the Stamp Act, the first direct, internal tax that it had ever levied on the colonists. Tea Act The Tea Act of 1773, an act of Great Britain's Parliament, was the catalyst for some of the most important moments of the lead-up to the Revolutionary War. 3:42m watch The colonists resisted the new tax, arguing that only their own elective colonial assemblies could tax them, and that “taxation without representation” was unjust and unconstitutional. After the British government rejected their arguments, the colonists resorted to physical intimidation and mob violence to prevent the collection of the stamp tax. Recognizing that the Stamp Act was a lost cause, Parliament repealed it in 1766. Did you know? Each year around the anniversary of the Boston Tea Party, a re-enactment party is thrown in Boston and visitors can tour replicas of the Dartmouth, the Beaver and the Eleanor, the three ships that were docked in the Boston Harbor and loaded with the East India Company's tea. Parliament did not, however, renounce its right to tax the colonies or otherwise enact legislation over them. In 1767, Charles Townshend (1725-67), Britain’s new chancellor of the Exchequer (an office that placed him in charge of collecting the government’s revenue), proposed a law known as the Townshend Revenue Act. This act placed duties on a number of goods imported into the colonies, including tea, glass, paper and paint. The revenue raised by these duties would be used to pay the salaries of royal colonial governors. Since Parliament had a long history of using duties to regulate imperial trade, Townshend expected that the colonists would acquiesce to the imposition of the new taxes. Unfortunately for Townshend, the Stamp Act had aroused colonial resentment to all new taxes, whether levied on imports or on the colonists directly. Moreover, Townshend’s proposal to use the revenue to pay the salaries of colonial governors aroused great suspicion among the colonists. In most colonies, the elective assemblies paid the governors’ salaries, and losing that power of the purse would greatly enhance the power of the royally appointed governors at the expense of representative government. To express their displeasure, the colonists organized popular and effective boycotts of the taxed goods. Once again, colonial resistance had undermined the new system of taxation, and once again, the British government bowed to reality without abandoning the principle that it had rightful authority to tax the colonies. In 1770, Parliament repealed all of the Townshend Act duties except for the one on tea, which was retained as a symbol of Parliament’s power over the colonies.