Colonists question whether Parliament had the right to tax the colonies
war was won but the costs had been huge, and would remain high due to the need to protect the colonies against other (western or native) enemies
American strategic and economic interdependence were disrupted and no longer coincided after the War
British felt the colonies should at least pay a part of their own protection
The Sugar Act caused alarm in the American colonies, partly because of the expected economic disadvantages, but also because of a number of other reasons, one of the most important being the severe implementation by the navy
Added to this was a general post-war depression and the enactment of another act prohibiting the use of paper money as legal tender, almost immediately following the Sugar Act
One of the steps taken, for example, was to threat with a boycott of English products
British were preparing a new tax because revenues were still too low.
England gave colonists the chance to raise money themselves, in other words, to tax themselves
in January 1765. It called for a tax on all kinds of paper in use, like various kinds of official documents used in court, harbors, and land transactions. The Act prescribed these documents had to be printed on paper carrying an official stamp
Almost all assemblies in the colonies challenged the right of the British, to tax the territories. Incidents were reported all over and preparations for the boycott of English goods were being made, a fact of which British merchants were highly sensitive
Parliament withdrew the Stamp Act, having grossly overestimated its own power and realizing the situation indeed had changed after the French-Indian war.