Tariffs and the International Tax Order

New
Journal
Author
Schön, W.
Country
International; OECD
Published Date
Issue
Bulletin for International Taxation 2026 (Volume 80), No. 4/5
FormatPDF
EUR
45
| USD
50 (VAT excl.)

Tariffs – or customs duties – have become a prominent feature of the international tax world in 2025 as the current US administration has resorted to a wide range of tariffs for many purposes. The main thrust of this article is to define the role of tariffs in two different settings: indirect taxation and direct taxation. From the perspective of consumption taxes, tariffs stand out as a discriminatory tax on imported goods that fundamentally challenge the very concept of non-discrimination and its ramifications. From the perspective of income taxes, tariffs can be conceptualized as placeholders for withholding taxes on profits from cross-border sales of goods. From this starting point, policy options for countries of origin and of destination are explained.