From Relic to Relevance, The Resurgence of Tariffs

U of Michigan Law & Econ Research Paper No. 24-053

Forthcoming, 77 U. CAL. L.J. (Winter 2026)

77 Pages Posted: 10 Mar 2025 Last revised: 6 May 2025

See all articles by Reuven S. Avi-Yonah

Reuven S. Avi-Yonah

University of Michigan Law School

Doron Narotzki

University of Akron - The George W. Daverio School of Accountancy

Tamir Shanan

College of Management

Date Written: March 10, 2025

Abstract

Modern legal scholarship has largely relegated tariffs to economic analysis, overlooking their legal and policy significance. This Article challenges that view by examining tariffs as a potential pillar of fiscal policy, exploring their viability as a revenue source alongside or in place of traditional income and corporate taxation. While historically central to U.S. government funding, tariffs diminished in importance with the rise of income taxation and trade liberalization. However, their recent resurgence as a tool for trade protection raises broader questions about their role in national economic strategy. This Article critically assesses the feasibility of a tariff-based tax system, drawing on historical lessons and economic modeling to evaluate its revenue potential, equity implications, and administrative challenges. It examines the legal constraints of such a system, including global trade compliance and the risks of economic retaliation. While tariffs alone cannot sustain a modern tax system, their strategic use, alongside excise and consumption-based taxes, offers a provocative alternative to existing revenue structures. By reframing tariffs as more than economic instruments, this Article situates them within broader debates on tax policy, sovereignty, and economic resilience in an era of shifting global trade dynamics.

Keywords: Tax, Tax Policy, Tariffs, Trade, Trade Policy, International Trade, Trade War

JEL Classification: K34, K00, F13, F10, B1, B2, F1

Suggested Citation

Avi-Yonah, Reuven S. and Narotzki, Doron and Shanan, Tamir, From Relic to Relevance, The Resurgence of Tariffs (March 10, 2025). U of Michigan Law & Econ Research Paper No. 24-053,

Forthcoming, 77 U. CAL. L.J. (Winter 2026)

, Available at SSRN: https://ssrn.com/abstract=5172266 or http://dx.doi.org/10.2139/ssrn.5172266

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

Doron Narotzki

University of Akron - The George W. Daverio School of Accountancy ( email )

259 S. Broadway Akron
Akron, OH 44325-4802
United States

Tamir Shanan

College of Management ( email )

7 Yitzhak Rabin Boulevard
P. O. Box 9141
Rishon LeZion, 75190
Israel

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