Finally in the spring of 1831, at the suggestion of Van Buren, who, like Jackson, supported the Eatons, Jackson replaced all but one of his Cabinet members, thereby limiting Calhoun's influence. Van Buren began the process by resigning as Secretary of State, facilitating Jackson's removal of others. Van Buren thereby grew in favor with Jackson, while the rift between the President and Calhoun was widened. Later, in 1832, Calhoun, as vice president, cast a tie-breaking vote against Jackson's nomination of Van Buren as Minister to Great Britain in a failed attempt to end Van Buren's political career. Missouri Senator Thomas Hart Benton, a staunch supporter of Jackson, then stated that Calhoun had "elected a Vice President", as Van Buren was able to move past his failed nomination as Minister to Great Britain and instead gain the Democratic Party's vice presidential nomination in the 1832 election, in which he and Jackson were victorious.
On July 14, 1832, Jackson signed into law the Tariff of 1832. It was designed to placate the nullifiers by lowering tariff rates, but the nullifiers in South Carolina remained unsatisfied. On November 24, the South Carolina legislature officially nullified both the Tariff of 1832 and the Tariff of 1828, to be null and void as of February 1, 1833. In response, Jackson sent U.S. Navy warships to Charleston harbor, and threatened to hang Calhoun or any man who worked to support nullification or secession. After joining the Senate, Calhoun began to work with Clay on a new compromise tariff. A bill sponsored by the administration had been introduced by Representative Gulian C. Verplanck of New York, but it lowered rates more sharply than Clay and other protectionists desired. Clay managed to get Calhoun to agree to a bill with higher rates in exchange for Clay's opposition to Jackson's military threats and, perhaps, with the hope that he could win some Southern votes in his next bid for the presidency. On the same day, Congress passed the Force Bill, which empowered the President of the United States to use military force to ensure state compliance with federal law. South Carolina accepted the tariff, but in a final show of defiance, nullified the Force Bill. In Calhoun's speech against the Force Bill, delivered on February 5, 1833, no longer as vice president, he strongly endorsed nullification, at one point saying:
As tensions over nullification escalated, South Carolina Senator Robert Y. Hayne was considered less capable than Calhoun to represent South Carolina in the Senate debates, so in late 1832 Hayne resigned to become governor; the South Carolina legislature elected Calhoun as his replacement. On December 28, Calhoun resigned as vice president to become a senator, with a voice in the debates. Van Buren had already been elected as Jackson's new vice president, meaning that Calhoun had less than three months left on his term anyway. The South Carolina newspaper City Gazette commented on the change:
When Calhoun took his seat in the Senate on December 29, 1832, his chances of becoming President were considered poor due to his involvement in the Nullification Crisis, which left him without connections to a major national party. After implementation of the Compromise Tariff of 1833, which helped solve the Nullification Crisis, the Nullifier Party, along with other anti-Jackson politicians, formed a coalition known as the Whig Party. Calhoun sometimes affiliated with the Whigs, but chose to remain a virtual independent due to the Whig promotion of federally subsidized "internal improvements."