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In Hawaii, the government became concerned that the subsequent United States Tariff Act of March 3, 1883, which lowered sugar tariffs imposed on product imported from all nations, had left them at a disadvantage. Article IV of the reciprocity treaty prevented Hawaii from making reciprocity treaties with other nations.
The monarch wished to lower the tariffs being paid out to the U.S. while still maintaining the Kingdom's sovereignty and making Hawaiian sugar competitive with other foreign markets. In 1854 Kamehameha III proposed a policy of reciprocity between the countries but the proposal died in the U.S. Senate. [18]
In 1890, the United States enacted the McKinley Tariff; the new law sharply raised the country's import tariffs, ending the Hawaiian sugar industry's dominance in the North American market and depressing prices, pushing Hawaii into turmoil. [2] [3]
The industry was tightly controlled by descendants of missionary families and other businessmen, concentrated in corporations known in Hawaiʻi as "The Big Five". [2] These included Castle & Cooke, Alexander & Baldwin, C. Brewer & Co., H. Hackfeld & Co. (later named American Factors (now Amfac)) and Theo H. Davies & Co., [11] which together eventually gained control over other aspects of the ...
The treaty's most immediate result was an increase in new United States plantation owners. San Francisco sugar refiner Claus Spreckels became a prime investor in Hawaii's sugar industry. [101] Over the term of Kalākaua's reign, the treaty had a major effect on the kingdom's income. In 1874, Hawaii exported $1,839,620.27 in products.
In 1875, the Reciprocity Treaty with the U.S. was forced through and removed all tariffs from cane sugar from Hawaii and contained a provision allowing the U.S. exclusive rights to maintain military bases in the islands. Protests by Native Hawaiians erupted immediately, taking eight days and 220 armed soldiers to put down.
In 1871 Alexander managed the Haʻikū sugar mill which had been constructed in 1861 by Castle & Cooke. [8] The Reciprocity Treaty of 1875 removed tariffs on sugar exported to the United States. But to raise their production a steady supply of water was needed for the semi-arid dry forests of Pāʻia.
The 1875 Reciprocity Treaty with the United States eliminated tariffs on the kingdom's sugar exports, bringing an accelerated upswing in the Hawaii's economic prosperity. The criteria for appointment to the cabinet changed from being qualified to advise the head of state, to being willing to enable the monarch's chosen course of state.