Trump has scattered tariffs all over the place but many of the losers in this are countries that don’t send much to the US anyway.
Some critical partners:
- China 54%
- European Union 39%
- Japan 24%
- India 26%
- South Korea 25%
- Vietnam 49%
Now there is an important caveat here in that none of those go into effect until April 9 so there is some time to negotiate.
Equally critical is that Canada and Mexico remain at 0% rates on USMCA-compliant goods, which covers most trade between them and for some other trade is just a matter of paperwork.
Last week, I wrote about what is expected on tariffs overall and I came down at 9-10% for average US trade plus 50% on China. Without doing the math, I think we’ve landed about there. I also think that could fall if we get some negotiating from the EU, Japan and others.
All that said, these China tariffs alone are a big problem for consumer prices and could create some big problems, especially with Vietnam still in there (it was a trans-shipment hub).
