Atlantic Council this week released a new visual guide to Trump tariffs that also argues that The Trump administration’s post-IEEPA tariff regime is a fragmented patchwork of national security tariffs, forced labour investigations, exemptions, and bilateral deals that produces vastly different effective rates across trading partners.
The post states that the pending Section 301 investigation into industrial excess capacity — covering more than 75 percent of US imports — represents the real test of the administration’s tariff strategy and will determine which countries face the steepest future increases.
Quote from the post:
China will be the ultimate test of the US administration’s new tariff regime. By announcing a 12.5 percent tariff on Chinese imports, Washington is increasing the effective tariff rate by 6.4 percentage points. Since Beijing has signaled that it will tolerate no more than a 20 percent total tariff rate, that leaves the US with just 7.5 percentage points of negotiating space, with the results of the second Section 301 investigation into industrial excess capacity still pending.
Read the full post: A visual guide to the new US tariff wall