The Nullification Crisis arose in the early 1830s when leaders of South Carolina advanced the idea that a state did not have to follow a federal law and could, in effect, "nullify" the law.
The idea that "states' rights" superseded federal law was promoted by John C. Calhoun, one of the most experienced and powerful politicians in the country. And the resulting crisis was, to some extent, a precursor to the secession crisis that would trigger the Civil War 30 years later.
Calhoun, who is most widely remembered as a defender of the institution of slavery, became outraged in the late 1820s by the imposition of tariffs which he felt unfairly penalized the South. A particular tariff passed in 1828 which raised taxes on imports, outraged southerners, and Calhoun became a forceful advocate against the new tariff.
The 1828 tariff was so controversial, in various regions of the country, that it became known as the Tariff of Abominations.
Calhoun believed the law had been designed to take advantage of the southern states.
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The South was largely an agricultural economy with relatively little manufacturing. So finished goods were often imported from Europe, which meant a tariff on foreign goods would fall heavier on the South.
In Calhoun's estimation, the southern states, having been treated unfairly, were under no obligation to follow the law. That line of argumentation, of course, was highly controversial.
Calhoun wrote an essay advancing a theory of nullification, in which he made a legal case for states to disregard some federal laws. At first Calhoun wrote his thoughts anonymously, in the style of many political pamphlets of the era. But eventually his identity as the author became known.
In the early 1830s, Calhoun was serving as vice president to Andrew Jackson. With the issue of a tariff again rising to prominence, Calhoun resigned his position, returned to South Carolina, and was elected to the Senate, where he promoted his idea of nullification.
For a time it appeared that armed conflict might result if South Carolina seceded from the Union.
The crisis was finally put to rest in 1833 when a compromise was reached on a new tariff. But the Nullification Crisis demonstrated that disputes between various regions of the nation could cause enormous problems.