A system and method of modulating tape tension during operation of a tape drive data storage system in which a fixed position tape guide utilizes one or more drag elements to exert a control force ona tape medium that affects downstream tape tension. Drag elements that may be used include, but are not necessarily limited to, air ports that delivery positive or negative air pressure to the tape medium, skiving edge elements that are positionable into and out of engagement with the tape medium, and brakes or motors that engage the tape guide (if it is rotatably mounted) to control its rotational torque. A tension control circuit is used to vary the operation of the one or more drag elements. Signal inputs to the control circuit are provided by a tape tension sensor adjacent to or incorporated in the tape guide.