Tariffs and Human Rights

By Ahmed Souaiaia

Generally, nowadays, a tariff is a tax imposed by a government on goods and services imported from other countries. Its primary purpose is to raise the cost of foreign products, making them less competitive compared to locally produced goods. Tariffs are a fundamental instrument in international trade policy and have been used historically both to protect domestic industries and as a political weapon.

Originally, the word tariff has an intriguing linguistic lineage—one that bridged the Islamic East with the Christian West. In the context of the modern West, tariff is connected to the Italian word tariffa, meaning “list of prices or taxes.” However, the word originates from the Arabic word ta`ārīf (تعاريف), meaning “notifications” or “definitions” — which itself referred to a list of customs duties. This etymology reflects the deep historical links between trade and taxation in the Mediterranean and Southwest Asia regions, where merchants and empires developed early customs systems to regulate the flow of goods.

Initially, tariffs were institutionalized in the emerging Islamic civilization. But one of the earliest formal systems of trade duties can be traced back to the time of the Prophet Muhammad, who established rules to regulate commerce fairly in accordance with Islamic principles of justice and equity.

Under Islamic governance, the caliphate, tariffs applied to state revenues above and beyond the religiously mandated taxes, called zaka and sadaka. These extra, non-religious taxes, ta`rifa, were also known as `ushr (a 10% tax on certain imports for non-Muslims) and khums (a tax of one-fifth on spoils of war and certain profits). However, these were strictly regulated to avoid exploitation. The Qur’an and Hadith emphasize ethical trade, transparency, and fair treatment of all parties, including foreign merchants.

The Caliph Umar Ibn al-Khattab is particularly noted for systematizing the collection of trade duties. However, unlike modern protectionist practices, Islamic tariffs were not used to monopolize trade but to ensure fair contributions to public welfare without unjust enrichment.

Beyond their development and use in the early Islamic civilization, tariffs were one of the earliest forms of taxation, used by ancient empires such as Mesopotamia, Egypt, and Rome. The Silk Road, the trade route connecting Asia with the Mediterranean, had numerous checkpoints where merchants had to pay customs duties — a form of tariff — to pass through different territories.

While Islamic governance formalized trade tariffs early on, the practice of taxing goods at borders predates Islam. Ancient civilizations such as the Greeks, Romans, and Persians also imposed duties on trade. However, what distinguishes Islamic use was the ethical framework designed to protect both the buyer and seller, including foreigners, under principles of justice. During the Abbasid Caliphate, tariffs were imposed on foreign traders, but with the aim of ensuring fair competition and revenue collection, not to suppress foreign economies.

With the start of the decline of the Islamic civilization and the start of the rise of the modern Western civilization, tariffs were first institutionalized in medieval trade hubs such as Venice and Genoa, where local rulers would impose duties on ships unloading goods in their ports. As European colonial powers rose in the 15th to 18th centuries, tariffs became central to mercantilism — an economic theory that emphasized maximizing exports and minimizing imports to build national wealth.

The rise of mercantilism marked a significant turning point. Countries sought to accumulate wealth through a favorable balance of trade, often leading to the imposition of high tariffs on imports. Britain, France, Spain, and the Netherlands imposed high tariffs on colonial imports to protect domestic industries while exploiting raw materials from their colonies.

By the 19th century, the British Empire began to shift toward free trade under the pressure of industrial dominance. The repeal of the Corn Laws in 1846 marked a historic pivot, yet many other nations continued using tariffs to protect nascent industries — a strategy known as infant industry protection. This practice helped countries like the United States, Germany, and Japan industrialize, contradicting their later advocacy for global free trade.

The U.S. enacted the Tariff of 1828, known as the “Tariff of Abominations,” which was met with fierce opposition from the South. Over the years, tariffs became a tool for protectionism, especially during economic downturns, such as the Great Depression when the U.S. implemented the Smoot-Hawley Tariff in 1930.

Tariffs are not merely economic tools; they are deeply political instruments that reflect power dynamics between nations. When large economies impose tariffs, they do so from a position of strength, often to coerce, punish, or extract concessions from weaker trade partners.

The intersection of tariffs and human rights is often overlooked. Examining it from a systems thinking framework, tariffs can have a cascading impact on living conditions, employment, access to essential goods, and economic sovereignty. Tariffs on essential imports like medicine, food, or fuel can make basic necessities unaffordable in smaller or poorer nations, exacerbating poverty and inequality. Protectionist policies can incentivize local monopolies to lower labor standards, reduce wages, or increase exploitation under the guise of “national competitiveness”. Tariffs imposed by developed countries on value-added goods from developing nations (e.g., roasted coffee instead of raw beans) trap those economies in the role of raw material suppliers, stifling industrialization and economic self-determination.

Throughout the 19th and early 20th centuries, many countries embraced protectionist trade policies centered around high tariffs. After World War II, there was a gradual shift towards lower tariffs and freer trade through agreements like the General Agreement on Tariffs and Trade (GATT) and the establishment of the World Trade Organization (WTO). There are few reasons the world community saw a value in the adoption and implementation of a global tariffs system. For instance, tariffs can shield domestic industries from foreign competition, protecting jobs and preserving certain manufacturing capabilities. Tariffs can also generate government revenue and be used as a negotiating tool in trade disputes.

However, tariffs also have drawbacks, and their arbitrary one-sided implementation often has negative consequences for disempowered communities. Tariffs tend to raise consumer prices, as the costs of tariffs are often passed on to end-users. This can erode the purchasing power of households and small businesses, potentially slowing economic growth. Retaliatory tariffs from trading partners can also spark trade wars, disrupting global supply chains. Tariffs have also been criticized for disproportionately harming developing economies and undermining human rights, as they can restrict access to essential goods and services.

In the modern global economy, tariffs are sometimes politicized to maintain control over the global production hierarchy. By imposing high tariffs on advanced manufactured goods from developing countries, wealthier nations limit the latter’s ability to compete. Smaller countries may be compelled to change internal policies (labor, environmental, regulatory) to maintain access to larger markets. By strategically protecting key industries — like aerospace, pharmaceuticals, or tech — developed countries preserve their technological and industrial monopoly.

For example, African nations have long struggled to export processed goods due to high tariffs from the Global North, which favors importing cheap raw materials and exporting high-value finished products. This dynamic locks in economic dependency and hinders sovereign development.

The link between tariffs and human rights is complex but significant. Tariffs can undermine the economic development of poorer nations, limiting their ability to provide essential services like healthcare, education, and infrastructure—key components of human rights.

For example, when wealthier countries impose high tariffs on agricultural or textile products from developing countries, they deprive those countries of critical export revenue. This entrenches poverty and weakens their ability to invest in social development. Moreover, tariff policies often ignore the labor conditions and environmental costs in export economies, incentivizing sweatshops and environmental degradation.

In the modern global economy, powerful countries and economic blocs use tariffs as a tool to maintain dominance. By imposing high tariffs on goods from smaller economies, they make it difficult for those nations to compete in global markets. Simultaneously, they may flood those same markets with subsidized goods, crushing local industries—a practice sometimes referred to as “dumping”. This creates a dependency cycle, where poorer countries are forced to rely on imports from richer nations, while being blocked from developing their own industries. Such policies maintain monopolies over manufacturing, technology, and intellectual property.

While tariffs may seem like mundane fiscal policies, they are in fact powerful expressions of economic and geopolitical power. Historically rooted in empire and control, tariffs continue to shape who gets to prosper in the global economy and who remains on its margins—locking certain communities in perpetual poverty and locking those with economic and political power in position of power and privilege. For a just global economic system, trade policies must be aligned not only with national interests but also with human rights, fair development, and equitable access to markets. Tariffs, if used responsibly, can support sustainable development. But as tools of coercion and economic dominance, they risk entrenching inequality and undermining the dignity and rights of millions.