Balfour failed to solve his greatest political challengethe debate over tariffs that ripped his party apart. Chamberlain proposed to turn the Empire into a closed trade bloc protected by high tariffs against imports from Germany and the United States. He argued that tariff reform would revive a flagging British economy, strengthen imperial ties with the dominions and the colonies, and produce a positive programme that would facilitate reelection. He was vehemently opposed by Conservative free traders who denounced the proposal as economically fallacious, and open to the charge of raising food prices in Britain. Balfour tried to forestall disruption by removing key ministers on each side, and offering a much narrower tariff programme. It was ingenious, but both sides rejected any compromise, and his party's chances for reelection were ruined.
