Sugar Act of 1764
Since Molasses was used for making rum, there was ongoing trade between the Middle colonies and New England and the possessions of the Spanish West Indians, Dutch, French, and British West Indies priced their sugar higher than its competitors did and they assumed no need of fish, lumber, and large quantities that were offered by the colonies. To discourage this kind of trading, the British parliament passed an exorbitantly high tax on the colonies for the imported molasses. It would have destroyed the entire rum industry had tax been actually collected. This was prevented by the passing of the Sugar Act.
The Sugar Act arrived at a time of economic depression. The tax was not direct, even if the colonists were aware that it existed. The colonists were the ones that supplied food to the British colony during the Seven Years War and this affected the colonial economy. But the major culprit was the new tax program as pointed out by the merchants and shippers. As protests of the Sugar Act ensued, the colonists focused more on the impact the Sugar Act had on the economy and not the other issue of taxation without representation with was the constitutional issue at hand.
The Sugar Act also enforced stricter laws especially on its ports making the smuggling of molasses risky. This caused economic hardship at New England ports. The British West Indies had no problems with colonial exports in terms of undivided access. There was an overflowing supply of molasses as compared to the demand. They were also able to save on expenses due to the reduced rum exports.