Category: trade barriers

Ranked: Harmful Tariffs by Economy

This post is by Jenna Ross from Visual Capitalist

The following content is sponsored by The Hinrich Foundation

Download the Sustainable Trade Index for free.

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...)

Global Trade Series: Fragmentation in the Digital Economy

This post is by Marcus Lu from Visual Capitalist

The following content is sponsored by The Hinrich Foundation
The Hinrich FoundationDownload The Report

Global Trade Series: Fragmentation in the Digital Economy

Since its creation, the internet has vastly expanded sociopolitical and economic development around the world. This is largely attributed to the its ability to facilitate communications, data sharing, and commerce on a truly global scale.

Unfortunately, a free and open internet will not always be guaranteed. Fragmentation between rival nations is growing, and it threatens to split the digital economy into silos.

In Part 3 of The Global Trade Series from the Hinrich Foundation, we examine the current state of digital fragmentation and its implications on the world.

The Physical Divide

Developed economies are entering a fourth industrial revolution, spawned entirely by digital technologies. This includes transformative innovations like artificial intelligence, blockchain, and 5G.

These technologies have the potential to improve income levels and quality of life, but they could also worsen global inequality. This is because of a major gap in internet-supportive infrastructure, as illustrated in the infographic.

To get a sense of this gap, consider the following numbers.

  • 86 countries have fewer than 300 secure servers per million people
  • The U.S. has over 110,000 secure servers per million people
  • Denmark, the Netherlands, and Singapore have an even higher ratio than the U.S.

Secure internet servers are the basis of protected communications on the internet. Without them, (Read more...)