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US TARIFF RATES VARY WIDELY BY COUNTRY

ADMIN || 7th October 2025

Currently tariff rates vary widely by US trading partner. Tariffs on goods imported from China top 40%, while other large trading partners are seeing much lower rates including 3% for Canada, less than 5% for Mexico, and 14.75% for Japan.

Overall, the average effective tariff rate has jumped by more than 340% from 2.2% when President Donald Trump took office in January to 9.7% as of July, according to data from the US International Trade Commission.

For South Korea, the effective tariff rate has risen from a negligible 0.24% at the beginning of the year to 13.1% in July now the seventh-highest level for any US trading partner.

By percentage point, the steepest tariff hike for any US trading partner has been for China, where the rate has risen by nearly 30 ppts since January. China has found some new markets for products that it used to sell to the US. It’s also expanding sales in products the US has never typically been a buyer of, like cars and ships.

As of July, Vietnam looks to be benefiting from trade-war induced reallocations, especially for phones and game consoles and tariff exemptions for electronics mean that might continue.

On US India trade negotiations, we believe any deal is likely only after elections in the Indian state of Bihar conclude on Nov. 14. Though there has been some reduction in Russian crude imports to India recently as per vessel tracking data, but at the same time, volumes on vessels with no listed destinations beyond the Suez jumped to the equivalent of more than 1 million barrels a day. Much of that crude could still end up in Indian refineries.

W.r.t Brazil, President Lula had a very interesting 30-minute video call with President Trump yesterday without any mention of convicted former Brazilian president Bolsonaro. Lula & Trump might meet at ASEAN summit later this month end. Lula also asked Trump on the call that US tariff’s on Brazil be reduced from current 50% to 10%.

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