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Ranked: Harmful Tariffs by Economy
Amid supply chain concerns and geopolitical tension, some economies have taken steps toward localization. More specifically, companies are bringing manufacturing back home and a number of governments have increased tariffs.
This graphic from The Hinrich Foundation, the second in a five-part series on the sustainability of trade, explores which economies have the most and least tariffs. It pulls data from the 2022 Sustainable Trade Index, which The Hinrich Foundation produced in collaboration with the IMD World Competitiveness Center.
What is a Tariff?
A tariff is a tax on imported goods. Tariffs can be beneficial because they are a source of government revenue and help prevent product “dumping”—when exporters price products abroad for less than they are worth in their home country. By adding a tax to imported goods, a tariff can help keep local products competitively priced.
However, taxes on imported goods can also have drawbacks. They are a form of trade protectionism, and can lower economic growth and productivity. In fact, one long-term study found that a 3.6% increase in the tariff rate led to a 0.4% decline in GDP growth five years later.
Number of Harmful Tariffs by Economy
For the purposes of this data, a harmful tariff is any tariff that (Read more...)