Keeping track of Tariffs

With all this tariff talk, I’m breaking some misconceptions. For instance, I thought China was our top trading partner. I had no idea that Canada charges tariffs between provinces —sounds laborious to keep track of! Nor did I realize the extent and amount of the tariffs charged worldwide.

Top Ten U.S. Trading Partners and Tariffs Charged Prior to April 1, 2025

1. Mexico

• Trade Context: Mexico was the U.S.’s top trading partner in 2023, with total trade valued at approximately $776 billion (goods only). Under the U.S.-Mexico-Canada Agreement (USMCA), most U.S. goods entered Mexico duty-free prior to April 1, 2025.
• Tariffs Charged: For USMCA-compliant goods, tariffs were generally 0%. For non-USMCA goods, Mexico applied MFN rates, averaging around 7% for industrial products and higher for certain agricultural goods (e.g., up to 20-25% on some items like dairy or poultry under supply management systems). Specific rates depended on the product.

2. Canada

• Trade Context: Canada was the second-largest U.S. trading partner, accounting for 14.3% of U.S. trade in 2023. Like Mexico, it operates under the USMCA.
• Tariffs Charged: Most U.S. goods entered Canada duty-free under USMCA prior to April 1, 2025. For non-USMCA goods, Canada’s MFN tariff averaged 4.1%, with higher rates on protected sectors like dairy (up to 200-300% on certain products due to supply management) and softwood lumber (subject to duties averaging 10-20% depending on market conditions).

3. China

• Trade Context: China was the third-largest U.S. trading partner, with a 10.9% share of U.S. trade in 2023 and a significant trade deficit ($295.4 billion in 2024).
• Tariffs Charged: Prior to April 1, 2025, China’s average MFN tariff rate was around 7.5% for U.S. goods, but retaliatory tariffs from the first Trump administration’s trade war (2018-2020) raised rates on many U.S. products to 20-25% or higher (e.g., soybeans, autos). The “Phase 1” trade deal in 2020 reduced some tensions, but specific rates varied widely by product.

4. Germany

• Trade Context: Germany, as part of the EU, contributed 4.4% of U.S. trade in 2023. The EU as a whole is a major U.S. trading partner.
• Tariffs Charged: Prior to April 1, 2025, the EU applied an average tariff of 5.1% on U.S. goods under MFN rules (no U.S.-EU free trade agreement existed). Specific rates included 10% on autos, 25% on certain steel products (retaliatory), and higher rates on agricultural goods (e.g., 15-20% on some food items).

5. Japan

• Trade Context: Japan is a significant U.S. trading partner, with a trade deficit noted in 2024 data.
• Tariffs Charged: Under the U.S.-Japan Trade Agreement (effective 2020), many U.S. goods entered Japan duty-free or at reduced rates prior to April 1, 2025. Japan’s average MFN tariff was 4.3%, but agricultural products faced higher rates (e.g., 38.5% on beef, 15% on some fruits). The Trump administration later claimed Japan charged 46% equivalent when factoring in non-tariff barriers.

6. South Korea

• Trade Context: A key U.S. trading partner in Asia, South Korea had a free trade agreement (KORUS FTA) with the U.S.
• Tariffs Charged: Prior to April 1, 2025, most U.S. goods entered South Korea duty-free under KORUS FTA. The average MFN tariff was 6.2%, with higher rates on agriculture (e.g., 40% on some rice products). The Trump administration later cited a 50% equivalent rate including non-tariff barriers.

7. UK

• Trade Context: The UK ran a trade surplus with the U.S. in 2023 ($14.5 billion per U.S. data).
• Tariffs Charged: Post-Brexit, the UK applied an average MFN tariff of 5.7% on U.S. goods prior to April 1, 2025, with most rates mirroring the EU’s (e.g., 10% on autos). No U.S.-UK free trade agreement was in place, though negotiations were ongoing.

8. India

• Trade Context: India is an emerging U.S. trading partner with a notable trade surplus.
• Tariffs Charged: Prior to April 1, 2025, India’s average MFN tariff on U.S. goods was high, around 13.8%, with significant variation (e.g., 20% on electronics, 100% on some alcoholic beverages). The Trump administration later claimed a 52% equivalent rate including non-tariff barriers.

9. Taiwan

• Trade Context: Taiwan is a key supplier of electronics to the U.S.
• Tariffs Charged: Prior to April 1, 2025, Taiwan’s average MFN tariff was 7.1% on U.S. goods, with lower rates on industrial products and higher rates on agriculture (e.g., 15-20% on some items). The Trump administration later cited a 64% equivalent rate with non-tariff barriers.

10. Vietnam

1. • Trade Context: Vietnam has grown as a U.S. trading partner, especially for consumer goods.
   • Tariffs Charged: Prior to April 1, 2025, Vietnam’s average MFN tariff on U.S. goods was around 9.6%, with higher rates on specific sectors (e.g., 20-30% on some agricultural products). The Trump administration later claimed a 92% equivalent rate, halved to 46%, factoring in trade imbalances and barriers.

Notes and Context

• Data Sources: Trade partner rankings are based on 2023/2024 data from sources like the U.S. Census Bureau and Euronews. Tariff rates reflect pre-April 1, 2025, conditions, primarily MFN rates unless a trade agreement applied.
• Limitations: Exact tariff schedules for every product aren’t fully detailed here due to variability. The listed averages are indicative, and specific rates could be higher or lower depending on the good.
• Trump’s Reciprocal Tariffs: On April 2, 2025, President Trump announced new U.S. tariffs effective April 5 (10% baseline) and April 9 (country-specific rates), calculated as half the perceived “charge” (trade deficit divided by exports, plus non-tariff barriers). Pre-April 1 tariffs from trading partners didn’t directly align with these calculations, which included non-monetary factors like currency manipulation.

This list reflects the top U.S. trading partners and their general tariff policies toward U.S. goods before the significant policy shift on April 2, 2025.

Sincerely, Grok