Australia has avoided any tariff increases in the latest implementation of Donald Trump’s “reciprocal” trade taxes, unlike many other nations that have not been so fortunate. Recently, the White House released a list detailing tariff rates affecting 68 countries and the 27-member European Union, while Australia maintains its baseline tariff of 10% on exports to the US, remaining unaffected by these new measures.
According to a senior Trump administration source, the tariffs were determined based on the trade imbalance with the US and the economic profiles of different regions. Regardless of the rationale, the new tariff structure has certainly produced evident winners and losers among countries.
Surprisingly, despite being a frequent target of Trump’s criticism, Mexico has escaped new tariff impositions, with a 90-day delay on any potential increase, maintaining the current 25% rate. On the other hand, Japan has benefitted from a considerable tariff reduction from 24% to 15%, while Indonesia and Thailand have seen their tariffs decrease from 32% and 36% to 19% respectively. India experienced a slight drop from 26% to 25%.
Contrarily, New Zealand, one of Australia’s closest neighbours, has seen its tariff significantly rise from the initial 10% to 15%. Lesotho faced an initial threat of a 50% tariff, but ultimately, its goods will be subject to a 15% tax rate. Other countries such as Taiwan and Pakistan will encounter tariffs of 20% and 19%, respectively, while several others, including Israel, Iceland, Norway, Fiji, Ghana, Guyana, and Ecuador, will see rates levied at 15%. Notably, Switzerland, a wealthy nation, has been assigned a steep tariff of 39%.
Less developed nations have borne the brunt of these new tariffs, with Syria facing a staggering 41% rate, and Myanmar and Laos both hit with 40%. Trump had previously threatened a 50% tariff on Brazilian goods, but the actual rate was adjusted to 10%, with the remaining 40% part of a separate announcement made just prior.
In summary, while Australia continues to benefit from the current tariff rate unchanged, various other nations are experiencing fluctuations that reflect their differing economic standings and relationships with the US.