The Tea Act was passed by the Parliament of Great Britain in an attempt to aid the struggling British East India Company, which was facing severe financial troubles due to competition from colonial merchants and the decline in tea consumption. This Act permitted the company to sell its surplus tea directly to the American colonies, bypassing colonial merchants and effectively reducing the price of tea for consumers. However, it also retained the tax on tea, which was part of the Townshend Acts, provoking anger among colonists who believed they were still being taxed without proper representation in Parliament.

Colonial reaction was swift and intense. The Act was perceived not only as an economic maneuver but as an infringement on colonial autonomy. Many colonists rallied against the Act, claiming it was another attempt by Britain to exert control over them without their consent. This culminated in the Boston Tea Party in December, when a group of colonists, disguised as Mohawk Indians, boarded British ships and dumped 342 chests of tea into Boston Harbor. This act of defiance became a pivotal moment in the lead-up to the American Revolution, symbolizing colonists' refusal to accept taxation and control from Britain.

The aftermath of the Tea Party led to increased tensions between Britain and its American colonies, resulting in punitive measures like the Coercive Acts. These events rallied more colonists to the cause of independence and laid the groundwork for future revolutionary activities, demonstrating the severity of colonial resistance to British policies. The Tea Act, while a legislative attempt to stabilize British interests, instead highlighted the deepening rift between the colonies and Britain, setting the stage for a broader revolution.