GLOBAL MACRO
Source: MNI - Market News/WTO
- A number of Asian countries are the most exposed to the US after Canada and Mexico in terms of export shares. In 2024, Taiwan’s shipments to the US picked up to 23.5% of its total from 17.7%. Japan is also highly exposed at 20%, Korea 18.7% and China 14.6%. The other major Asian countries all have export shares above 10%.
- In terms of shares of their economies, Taiwan and Thailand are the most exposed to the US at around 10% of GDP but it is also high for Korea.
- Korea, Australia & Singapore have FTAs with the US, whereas negotiations are ongoing with Japan but there is a US-Japan trade partnership in place. China has a “Phase One Agreement”. Taiwan a Trade and Investment Framework Agreement as do Thailand and Indonesia.
- The FTAs should limit reciprocal US tariffs. China doesn’t have an FTA with the US though, has been a target from Trump’s first administration and the size of its average tariffs on the US make it a continued target (see table).
- The relationship with the EU is cited as important by the US Treasury but it also has higher tariffs against the US than vice versa plus there’s also a large surplus.
Major trading partner duties faced % 2022
| MFN import duties % | Simple average tariff | Wtd average tariff | Simple average tariff | Wtd average tariff | ||||
| US on EU | EU on US | US on EU | EU on US | US on CH | CH on US | US on CH | CH on US | |
| Agricultural products | 7.5 | 14.7 | 2.7 | 4.2 | 4.8 | 12.2 | 3.3 | 16.1 |
| Non-agricultural products | 3.9 | 4.5 | 1.4 | 0.9 | 4.0 | 6.0 | 2.6 | 4.1 |
Source: MNI - Market News/WTO
*Wtd average = trade weighted average tariff
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