Discussion Paper

A Country‑Specific View of Tariffs


Abstract: U.S. trade policy remains in flux. Nevertheless, important elements of the new policy regime are apparent in data through July. What stands out are the large differences in realized tariff rates by trading partner, ranging from less than 5 percent for Canada and Mexico to 15 percent for Japan and to 40 percent for China. This post shows that the bulk of cross-country differences in tariff rates is explained by two factors: the U.S.-Canada-Mexico free trade agreement and differing sales shares in tariff-exempt categories.

JEL Classification: F13;

https://doi.org/10.59576/lse.20251006

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Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2025-10-06

Number: 20251006