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ARTICLE · 03 AUGUST 2025

Digital tariffs: a 2026 trade risk for Australian businesses?

Corrs Chambers Westgarth
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Moratorium blocks countries from imposing customs duties on digital products delivered electronically across borders.

AustraliaInternational Law

The introduction of digital tariffs could be a potential new trade risk emerging in 2026 – though most companies are unaware of it.

Since 1998, World Trade Organisations (WTO) members have agreed not to impose customs duties on 'electronic transmissions', to foster cross-border digital trade and e-commerce development. Electronic transmissions cover digital products such as software, cloud services, streaming content, e-books and online services.

The moratorium has been renewed every two years ever since, with the last extension set to expire by 31 March 2026. But in 2026, that could end.

At the WTO's Ministerial Conference in 2024, members barely reached consensus to extend the moratorium. India, South Africa and others made clear: no more automatic renewals. Without agreement at the next Ministerial Conference in 2026, digital tariffs are back on the table — and global digital trade could face a serious rupture.

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