Introduction
Tariffs—taxes on imports—are a cornerstone of trade policy, balancing protection for domestic industries with consumer access to affordable goods. In 2023, the G20 nations, representing 80% of global GDP, showcase stark contrasts in tariff strategies. Let’s unpack their average tariff rates and what they reveal about economic priorities.
G20 Countries: Average Most-Favored-Nation (MFN) Tariff Rates
| Country | Simple Avg. MFN Tariff | Weighted Avg. MFN Tariff | Key Notes |
|---|---|---|---|
| Argentina | ~14.3% | ~11.2% | High tariffs on autos, textiles, and agri. |
| Australia | ~2.7% | ~1.3% | Low barriers, focus on open trade. |
| Brazil | ~13.6% | ~8.0% | High industrial/agri tariffs. |
| Canada | ~3.9% | ~1.7% | Lower tariffs due to USMCA/CUSMA. |
| China | ~9.8% | ~4.1% | Reduced tariffs post-WTO accession. |
| France (EU) | ~5.1% | ~2.8% | Follows EU Common External Tariff. |
| Germany (EU) | ~5.1% | ~2.8% | Same as EU average. |
| India | ~13.5% | ~6.3% | High tariffs on electronics, autos, agri. |
| Indonesia | ~8.3% | ~4.5% | Protective tariffs on agri/consumer goods. |
| Italy (EU) | ~5.1% | ~2.8% | EU-wide tariff structure. |
| Japan | ~4.0% | ~2.1% | Low tariffs except for sensitive sectors. |
| Mexico | ~7.0% | ~3.8% | USMCA reduces tariffs with NAFTA partners. |
| Russia | ~6.0% | ~3.5% | Sanctions and trade restrictions impact. |
| Saudi Arabia | ~5.0% | ~2.7% | Low due to energy-focused economy. |
| South Africa | ~7.2% | ~3.9% | Moderate tariffs, higher on manufactured. |
| South Korea | ~13.7% | ~6.9% | High agri tariffs, low industrial. |
| Turkey | ~10.6% | ~5.2% | Protective tariffs on agri and textiles. |
| United Kingdom | ~5.7% | ~2.5% | Post-Brexit tariffs align with WTO rules. |
| United States | ~3.3% | ~1.6% | Low overall, but spikes in sectors like textiles. |
| European Union | ~5.1% | ~2.8% | Common External Tariff applies to all members. |
The bar plots above highlight two key metrics:
Simple Average: Treats all products equally.
Weighted Average: Reflects the actual value of imports (e.g., high-value goods like semiconductors get more weight).
Top Protectors:
Argentina (14.3%), Brazil (13.6%), and India (13.5%) lead in simple averages, shielding industries like agriculture and automobiles.
South Korea (13.7%) surprises with high simple tariffs, driven by protections for rice and livestock.
Free-Trade Champions:
Australia (2.7%) and United States (3.3%) maintain low barriers, prioritizing open markets.
The EU (5.1%) and Japan (4.0%) balance protection for sensitive sectors (e.g., EU dairy, Japanese rice) with liberal industrial tariffs.
Why Weighted Averages Matter
Weighted averages often tell a different story:
China’s weighted tariff drops to 4.1% (vs. 9.8% simple), as it imports high-value tech goods at low rates.
Brazil’s weighted average (8.0%) remains high, reflecting tariffs on heavily imported machinery and chemicals.
Sectoral Battlegrounds
Agriculture:
India slaps tariffs as high as 150% on wine and 40% on apples.
The EU protects its farmers with 10–15% tariffs on grains.
Industrial Goods:
The U.S. charges just 2.5% on cars but 25% on trucks.
Emerging economies like Turkey impose 20%+ tariffs on textiles to boost local manufacturing.
Data Sources & Caveats
Data: WTO Tariff Profiles and World Bank WITS.
Note: 2023 figures are estimates; applied rates may differ due to trade agreements.
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