engaging in unfair trade practices. Tariff rates may be “stacked” for a particular country, with the sum of multiple tariff rates determining the overall tariff rate. IEEPA tariffs were broad; Section 232 and Section 301 tariffs were generally product specific. The tariff saga continued in 2026, and on February 20 the Supreme Court struck down tariffs that were implemented under the International Emergency Economic Powers Act (IEEPA), stating that the tariffs exceeded the powers given to the President by Congress under the 1977 law. The court was mute on whether or not the federal government should provide refunds to businesses that have paid IEEPA tariffs. Immediately following the Supreme Court ruling, President Trump signed an executive order imposing a new 10% global tariff. The following day, President Trump stated that the tariff rate would be raised to 15%. The new executive order was based on Section 122 of the Trade Act of 1974, which permits a President to implement tariffs of up to 15% for 150 days (July 24, 2026), unless extended by Congress. There are also product-specific exemptions, including critical minerals, energy products, agricultural goods, and USMCA compliant goods. Specific product tariffs (with certain exemptions) invoked under Section 232 (national security) and section 301 (unfair trade) remain in place and were not part of the Supreme Court ruling. Specific product tariffs (section 232 and section 301 tariffs) included the following: • 50% on steel and aluminum (10%-25% for U.K.); 50% on copper (10%-50% for U.K,) • 25% tariff on all automobiles, with an exemption for U.S. content and a discount through April 2027 on parts tariffs for U.S.-assembled autos; reduced to 10% on the first 100,000 U.K. imports; reduced to 15% for Japan, E.U. and South Korea • 25% on certain semiconductors and their derivatives; with exemptions for specific uses and trade agreements, including semiconductors that are used in U.S. data centers • 25% tariff on medium/heavy-duty trucks and key parts; 10% buses; some USMCA relief • 10% softwood; 25% upholstered furniture and 25% cabinets/vanities • Pharmaceuticals – a tiered rate tariff structure ranging from 0%-100% based on country of import, onshore production, and specific drug use The table below contains tariff information for the top ten U.S. trading partners in 2024. The table includes the 2024 trade-weighted average tariff rate, the “reciprocal” tariff rates announced April 2, 2025, the adjusted reciprocal tariff rates following the August 7 trade deal deadline, the trade-weighted average tariff rate as of February 2026 when IEEPA tariffs were in force, and the trade-weighted average tariff rate post IEEPA as of April 2026. The trade- weighted average tariff rate for a given country is the average of applied tariff rates for each product imported weighted by the import share of the product based on 2024 trade. The reciprocal tariffs were implemented based on 2024 merchandise trade deficits. The United Nations Trade and Development has calculated the trade-weighted average tariff rate applied to each country based on the composition of exports to the U.S. in 2024. The trade- weighted average tariff rate using 2024 trade as a base allows a comparison showing how statutory tariff rates have changed over time or between countries. However, it does not account for changes in trade. The adjusted reciprocal tariff rate reflects any trade agreement or tariff rate adjustment made after April 2, 2025. The trade-weighted average tariff rate can differ from the reciprocal tariff rate because of additional layers of tariffs, including Section 232 tariffs (national security) and section 301 tariffs (unfair trade). The trade-weighted average tariff rate can also differ from the adjusted reciprocal tariff rate because of products excluded from tariffs, such as products covered in the USMCA. The average effective tariff rate reflects what businesses are actually paying on average for importing from a country. The average effective tariff rate is calculated by dividing total tariff revenue actually collected on imports from a country by the total value of imports from that country. However, the effect of high tariffs on trade is underestimated, as the purchase of higher tariff products may be suppressed which results in a lower average effective tariff rate. According to the Budget Lab at Yale University , the overall average effective tariff rate for the U.S. was 11.8% in April 2026 based on current tariffs and trade, the highest since the early 1940s (excluding 2025). Average effective tariff rates by country: China 23.9%, Canada 7.1%, Mexico 11.5%, European Union 9.7%, Japan 13.4%, U.K. 7.6%. Generally, the average effective tariff rates are slightly lower than the trade-weighted average tariff rate.
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Center for Business and Economic Insight
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