The weighted average tariff rate of the United States globally has surged to over 20% as of early August 2024.

Data from Jinshi and the Yale Budget Lab report show that the average tariff applied by the United States on global goods has increased from about 2% at the beginning of the year to nearly 18.6%-20.11%, significantly affecting the scale of international trade.

MAIN CONTENT

  • The United States has raised the weighted average tariff to 20.11% as of August 7, 2024.

  • The simple tariff increase also rose sharply from 2.08% to 17.39% in just 8 months.

  • The scale of global goods affected by U.S. tariffs has risen to $2.747 trillion.

What is the weighted average tariff of the United States and why has it increased significantly?

The weighted average tariff assesses the tax level applied based on the trade flow weight of each type of goods, reflecting tax policy more realistically than a simple tariff. As of August 7, 2024, this U.S. tariff level has reached 20.11%, significantly up from 2.44% at the beginning of the year.

This surge reflects U.S. tax policy adjustments in the first half of 2024, which analysts believe to be the highest since 1933. The increase in tariffs directly impacts import costs and thereby affects global supply chains.

How has the simple tariff rate of the United States changed in 2024?

The simple tariff level, which calculates the unweighted average of products imposed by the United States, has rapidly increased from 2.08% at the beginning of the year to 17.39% on August 7. This figure reflects a significant expansion of items subject to tariffs or increased tariffs.

This increase puts many manufacturing and consumer sectors under cost pressure, while significantly changing the import behavior of U.S. businesses and consumers. This trend indicates that tax policy is becoming unpredictable, requiring businesses to enhance risk management.

What is the impact of increasing tariffs on global trade volume?

The scale of goods affected by U.S. tax policy has increased from $288.46 billion at the beginning of the year to $2.747 trillion in August 2024. This boom reflects the vast impact of tax policies on the global market.

The increase in tariffs not only slows the flow of goods but can also raise product costs, affecting supply chains and the economies of the United States' trading partner countries. This poses a significant challenge to the sustainable development of international trade.

U.S. tariff policy has pushed the average effective tax rate up to 18.6%, the highest in nearly a century, according to the Yale Budget Lab report in August 2024.

Yale Budget Lab, report dated August 7, 2024

Frequently Asked Questions

How does the weighted average tariff differ from a simple tariff?

The weighted average tariff is based on the transaction value of each item, making it more accurate in assessing impacts, while the simple tariff averages without considering quantity or value.

Why did the tariff rate of the United States increase sharply in 2024?

The United States is adjusting its tax policy to promote domestic production, protect domestic industries, and reshape global supply chains.

How does the increase in tariffs by the United States affect international trade?

Increasing tariffs slows trade, raises import costs, disrupts supply chains, and negatively impacts global economic markets.

How can businesses respond to changes in U.S. tax policy?

Businesses need to closely monitor policies, diversify their import markets, and implement comprehensive risk management to mitigate impacts.

To what extent does the tariff have a clear impact on consumer prices?

When tariffs exceed double-digit averages as they do now, they will certainly push up import prices and affect the retail prices of consumer goods.

Source: https://tintucbitcoin.com/tariff-my-cao-nhat-tu-1933-anh-huong/

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