Quick Facts About Tea Act
As a result of colonial protests, in 1770, Parliament repealed the Townshend duties, except for the duty on tea.
Parliament retained the duty on tea to maintain the principle that the British government had authority to tax the colonies.
The colonists responded to the remaining duty on tea by boycotting English tea and drinking smuggled tea. By 1773, the British East India Company was in financial distress due in part to the colonial boycotts.
In 1773, Parliament passed the Tea Act, which granted the British East India Tea Company a monopoly on the importation of tea into the colonies.
The monopoly enabled the British East India Tea Company to sell tea at a lower price than smuggled tea, and at a lower price than it sold in England.
Even though the Tea Act lowered the price of tea, colonists resented the act because it maintained the British position that Britain could tax the colonies without granting them representation in Parliament.
Colonial reaction to the Tea Act led to the Boston Tea Party on December 16, 1773.