But not anymore. At times in the 19th Century, over 90% of U.S. federal revenues came from tariffs; now they account for about 1% of its income. The Progressive Policy Institute (PPI) explains what happened: Tariffs Are 1 Percent Of Total Tax Revenues.
Many developing countries still raise a large part of their revenues from tariffs. For example, Mauritius raises about 29% of its revenues from tariffs.
This can create fiscal challenges for these countries if they commit to reducing import tariffs as part of a Doha Round agreement. This short South Centre analytical note available at this link looks at the issue from the point of view of these countries: "Revenue Implications of WTO NAMA Tariff Reduction ".
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