What Was the Sugar Act? Definition and History

Boston Harbour
The town of Boston in Massachusetts with several ships of war in the harbour in the 1700s. MPI / Getty Images

The Sugar Act of 1764 was a law enacted by the British Parliament intended to stop the smuggling of molasses into the American colonies from the West Indies by cutting taxes on molasses. The act also imposed new taxes on several other imported foreign goods while further restricting the export of certain highly demanded commodities such as lumber and iron that could legally be shipped from the colonies under the Navigation Acts. Proposed by British Prime Minister George Grenville, the Sugar Act amended the Molasses Act of 1733, which had actually reduced revenues by encouraging smuggling.

Key Takeaways: Sugar Act of 1764

  • The Sugar Act of 1764 was a law enacted by Britain to increase British revenues by preventing the smuggling of molasses into the American colonies and enforcing the collection of higher taxes and duties.
  • British Prime Minister George Grenville proposed the Sugar Act as a way for Britain to generate revenue to protect its foreign colonies and pay its debts from the French and Indian Wars.
  • In the American colonies, the Sugar Act was especially harmful to merchants and consumers in the New England seaports.
  • Colonial opposition to the Sugar Act was led by Samuel Adams and James Otis, who contended that the duties imposed by the Sugar Act represented taxation without representation.
  • The British Stamp Act of 1765 caused more widespread and violent protests throughout the colonies, eventually leading to the first battle of the American Revolution on April 19, 1765.


When Lord George Grenville took over as British prime minister in April 1763, Parliament found itself without the money it needed to protect the foreign colonies while repaying its massive debt from the recently concluded French and Indian Wars. Correctly sensing that the British people had reached their taxpaying limit, Grenville looked to the American colonies, which had so far paid relatively little in taxes but were promised full compensation for their contribution to the war effort. Citing these facts, Grenville convinced Parliament that the colonies should—for the first time in their history—contribute to the costs of supporting and defending them. Parliament responded by passing a series of colonial tax laws now known as the Revenue Acts, made up of the Sugar Act 1764, the Currency Act of 1764, the Stamp Act of 1765, the Townshend Acts of 1767, and the Tea Act of 1773.

The Sugar Act of 1764 amended the existing Molasses Act of 1733, which had imposed a hefty duty of six pence (about $.07 USD) per gallon on molasses—the key ingredient of rum—imported into the colonies from the non-British West Indies. However, instead of generating revenue, the duty resulted in most molasses shipments being smuggled into the colonies. The Sugar Act of 1764 reduced the duties on molasses and refined sugar to three pence, and it also empowered customs officers to act more aggressively in collecting duties and employ privately owned warships to intercept and seize ships suspected of smuggling.

Rewarded with a share of the profits from the sale of the seized ships and cargo, the “privateer” captains and crews of these warships were encouraged to attack and detain ships at random. This virtual form of government-endorsed piracy and sudden, often overly zealous enforcement of duty collection policy, angered American merchants both in the colonies and in England, many of whom had become wealthy from smuggling.

Impact on the Colonies

The Sugar Act also imposed new taxes on other imported products, such as wine, coffee, and fabric, and strictly regulated the export of lumber and iron, then the most demanded commodities produced in the colonies. The tax on sugar and molasses, coupled with Britain’s drastic anti-smuggling enforcement methods, greatly harmed the emerging colonial rum industry by giving British West Indies sugarcane planters and rum distillers a virtual monopoly.

The combined effects of the Sugar Act also greatly reduced the colonies’ ability to trade with Portugal, the Azores, the Canary Islands, and the French West Indies, their main customers of lumber, iron, flour, cheese, and farm produce. By reducing the markets to which the colonies could sell while restricting their access to money needed to buy goods manufactured in Britain, the Sugar Act, along with the other associated Revenue Acts, greatly limited the colonial economy.

Among all the regions of the colonies, the New England seaports were especially hurt by the Sugar Act. Smuggling became so dangerous that their dwindling profits from rum no longer covered the taxes on molasses. Forced to charge more for their rum, many colonial merchants were priced out of the market by the British West Indies, which now controlled the market. Profiting from reduced expenses thanks to their vast supplies of molasses, the islands of the British West Indies prospered at the expense of the New England seaports.

While American colonial leaders were all too aware that Britain’s imposition of the various Revenue Acts represented unfair taxation without representation, it was their economic impact, rather than their constitutional issues, that served as the main focus of the colonists’ protests.

Opposition to the Act

While all but the staunchest British loyalists among the American colonists objected to the Sugar Act, the formal protest against it was led by former British tax collector Samuel Adams and provincial legislative member James Otis, both of Massachusetts.

In a paper presented to the Massachusetts assembly in May 1764, Adams denounced the Sugar Act as a denial of the colonists’ rights as British subjects that reduced them to the status of slaves.

“For if our Trade may be taxed why not our Lands? Why not the Produce of our Lands and everything we possess or make use of? This we apprehend annihilates our Charter Right to govern & tax ourselves. It strikes our British Privileges, which as we have never forfeited them, we hold in common with our Fellow Subjects who are Natives of Britain. If Taxes are laid upon us in any shape without our having a legal Representation where they are laid, are we not reduced from the Character of free Subjects to the miserable State of tributary Slaves?”

In his own report on the Sugar Act, James Otis struck at the heart of the issue of the colonists—still British subjects—being taxed without a voice in Parliament. “Can it be possible that the duties to be imposed and the taxes to be levied, shall be assessed without the voice or consent of a single American in Parliament?” Otis asked, adding, “If we are not represented, we are slaves.”

In these words, Otis had offered the doctrine from which the colonists would draw inspiration over the next decade of protest and resistance that led to the American Revolution. Indeed, Otis has been credited with coining the American Patriot’s famous rallying cry of “Taxation without representation is tyranny.”

Connection to the Revolution

In August 1764, just three months after Samuel Adams and James Otis had published their scathing reports listing the ills of the Sugar Act, several Boston merchants agreed to stop buying non-essential luxury products from Britain. At this time, however, protest to the Sugar Act by the general public had remained limited. That would change drastically a year later, when the British Parliament passed the Stamp Act of 1765.

A painting depicting political protest by the 'Sons of Liberty' known as the Boston Tea Party on December 16, 1773 in Boston, Massachusetts.
A painting depicting political protest by the 'Sons of Liberty' known as the Boston Tea Party on December 16, 1773 in Boston, Massachusetts. llustration by Ed Vebell/Getty Images

The Stamp Act imposed a direct tax on the colonists by requiring that virtually all printed materials produced in the colonies, such as court papers, newspapers, pamphlets, almanacs, even playing cards and dice, be printed only on paper made in London and bearing an embossed British revenue stamp.

While the effects of the Sugar Act had been felt mainly in New England, the Stamp Act attacked the pockets of nearly every adult in all 13 colonies. Formed in the summer of 1765, the Sons of Liberty burned the stamps and raided the homes and warehouses of wealthy British stamp distributors and tax collectors. Amid the torrent of protests, riots, and stamp burnings that followed, colonists effectively nullified the Stamp Act.

These struggles against “taxation without representation” stirred the colonial passions that led to the firing of the “shot heard round the world” in the Battles of Lexington and Concord that marked start of the American Revolution on April 19, 1765.

Sources and Further Reference

  • “The Sugar Act: Titled The American Revenue Act 1764.” Independence Hall Association, https://www.ushistory.org/declaration/related/sugaract.html.
  • “British Control and Colonial Resistance, 1763 to 1766.” U.S. Library of Congress, http://www.loc.gov/teachers/classroommaterials/presentationsandactivities/presentations/timeline/amrev/britref/.
  • “Parliamentary taxation of colonies, international trade, and the American Revolution, 1763–1775.” U.S. Department of State, Office of the Historian, https://history.state.gov/milestones/1750-1775/parliamentary-taxation.
  • Draper, Theodore. “A Struggle For Power: The American Revolution.” Vintage (March 15,1997), ISBN 0-8129-2575-0
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Longley, Robert. "What Was the Sugar Act? Definition and History." ThoughtCo, Dec. 6, 2021, thoughtco.com/the-sugar-act-definition-and-history-5076532. Longley, Robert. (2021, December 6). What Was the Sugar Act? Definition and History. Retrieved from https://www.thoughtco.com/the-sugar-act-definition-and-history-5076532 Longley, Robert. "What Was the Sugar Act? Definition and History." ThoughtCo. https://www.thoughtco.com/the-sugar-act-definition-and-history-5076532 (accessed April 1, 2023).