From Relic to Relevance, The Resurgence of Tariffs

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