US Tariffs: China and Brazil Laugh, South Korea and Japan Cry
South Korean media "Chosun Ilbo (Japanese Edition)" reported on February 23: China and Brazil will benefit the most from President Trump's newly announced 15% global tariff policy. On the other hand, analysis indicates that South Korea and Japan will be relatively harmed.
According to the Financial Times (FT) report on the 22nd (local time), the trade research institution Global Trade Alert (GTA) disclosed the impact of Trump's new global tariffs on various countries. GTA is a private trade policy research organization based in Switzerland.
According to the study, if the global 15% tariff is implemented, Brazil's average tariff rate will decrease by 13.6% compared to before. China will see the second-largest decline globally at 7.1%. Countries such as India, Canada, and Mexico, which have been under strong pressure from Trump since he took office, are also expected to benefit from the 15% single tariff system.
Southeast Asian countries such as Vietnam, Thailand, and Malaysia are listed as countries with lower average tariff burdens. These countries are competitive in manufacturing sectors such as clothing, furniture, and toys. This means that the single tariff system will yield more benefits compared to the current reciprocal tariffs between countries.
On the other hand, traditional U.S. allies such as Europe, Japan, and South Korea are expected to face additional tariff burdens. Because steel, aluminum, and car tariffs will continue. In particular, the UK will face a tariff higher than the previously determined 10%, with the average tax rate increasing by 2.1 percentage points.
The EU has agreed to a 15% tariff rate, and it is expected to increase the average tax rate by 0.8 percentage points.
GTA also predicts that the average tariff for South Korea and Japan under the new single tariff system will slightly increase (but less than 0.8 percentage points for the EU).
On the 20th, the U.S. Supreme Court ruled that Trump's tariff policy was illegal. In response, Trump announced that he would implement a 15% tariff globally. Without additional approval from Congress, the new global tariff will only take effect for 150 days.
Original article: toutiao.com/article/1857891479937419/
Statement: The article represents the views of the author.