By: Dr Malayendu Saha, Dr Soumya Mukherjee

From the dusty caravan trails of ancient Anatolia to modern-day high-speed fibre-optic cables carrying the contracts of today’s digital economy, tariffs have probably been one of the oldest and most enduring instruments of statecraft. Tariffs do not often capture the attention of inspirational revolutionary slogans or the dramatic focus of battlefields; nonetheless, their effect can be just as disruptive and transformational.

In 2025, the American government announced it was instituting an average import tariff of 18.6%, the highest tariff rate since the 1930s. The tariff impacted over 60 countries and is estimated to cost the average American household a total of an extra $2400 a year in products (such as groceries and electronics) at elevated prices due to tariffs.

There is nothing new about tariffs. For approximately 5000 years, empirical evidence suggests they have been used as tools for building empires, waging economic war, and causing the rise and fall of entire civilizations.

The first tariffs were rough, but successful; they were tolls at the gates of cities, river crossings and mountain passes. Around 2000 B.C., Assyrian traders moving tin and textiles through Anatolia, were taxed as much as 10 % on the value of their cargo. The tax revenue paid for, not only the infrastructure to allow trade to occur, but the military campaigns to defend and secure the trade routes being taxed.

By the 5th century B.C. Athens had perfected the strategy with a 2 % export/import duty. This rate was low enough to encourage trade but high enough to provide resources for their powerful navy. This navy assured Athenian control over the Aegean Sea.

The Roman Empire went on to establish a consistent customs structure, where tariffs known as portoria contributed 70 to 80 % of provincial budgets. This revenue was used to pay for the roads, aqueducts and garrisons that underpinned Rome’s imperial ambitions.

Meanwhile, on the other side of the........

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