Why haven't state governments levied tariffs on imports, or tax other states products? Would this be a sensible way to raise revenues? What are the advantages/disadvantages?
The first problem with this is that it's illegal. A state cannot set an import tax, fee, tariff, or quota because it's against the Commerce Clause and interferes with interstate (domestic) trade. Only the federal government can set tariffs, the states cannot do so. For the same reasons, the states also cannot tax the goods on other state's products. If a state taxed all ...
This solution discusses if state governments can levy tariffs on imports or tax other states products to raise revenues in that state. The advantages and disadvantages are also discussed, as well as if this is possible to do with interstate commerce.