In a tariff-fueled year, the U.S. has gone from imposing under two percent tariffs on all products imported into the country, to hitting a nearly 7.5 percent rate, measuring up to and, in many cases, bypassing the tariffs of emerging markets and advanced economies alike, according to calculations by Torsten Slok Deutsche Bank’s chief economist
. By comparison Germany and other eurozone countries have a 1.8 percent tariff on all products, while India has a 5.8 percent rate.
This surge in tariffs comes after President Trump reignited trade tensions with China
, after talks fell through between the two countries. Tariffs were raised from 10 percent on $200 billion worth of Chinese goods to 25 percent on Friday. President Trump further threatened to impose 25 percent taxes on an additional $325 billion in Chinese goods at a later, undisclosed time. Instating these additional tariffs would place the U.S. among one of the most protectionist countries in the world. Chinese Vice Premier Liu He is scheduled to continue negotiations with Washington on Wednesday, though it is likely that will be cancelled.
The World Trade Organization
recognizes that tariffs can act as a safeguard for young industries in smaller countries, all of which are descriptors that do not pertain to the United States
. The philosophy from the WTO rests on the idea that enabling countries and industries with this profile will allow them to grow without competition from wealthier companies in other countries that could crush its local industries.