Economic News:
Business activity growth showed signs of slowing in March as tariffs pushed prices higher, according to new data from the Institute for Supply Management (ISM). The ISM manufacturing PMI slipped back into contraction territory after two months of expansion, with new orders declining for a second straight month and the prices index surging to 69.4%—largely attributed to tariff-related cost increases. In contrast, the ISM services PMI indicated continued expansion in the services sector for the ninth consecutive month with a reading of 50.8%, though this marked a decline from February and fell short of expectations; notably, price pressures remained elevated, with many respondents citing tariffs as a key driver. Despite these inflationary headwinds, the U.S. labor market showed strength, as the Labor Department reported a sharp jump in nonfarm payrolls, with 228,000 jobs added in March—far exceeding forecasts and up from February’s revised total of 117,000—though the unemployment rate ticked up to 4.2%. While the strong job report pointed to underlying economic resilience, it did little to lift investor sentiment during the week, as concerns over the broader impact of escalating tariffs on future growth continued to dominate market focus.
What We’re Showing:
On April 2, President Trump announced a series of steep new tariffs, including a 24% tariff on Japan, a 26% levy on India, and a 49% tariff on Cambodia. These come along with a 10% baseline tariff for all countries, set to take effect on April 9th. For context, many of the world’s largest economies have average trade weighted tariff rates below 5%. This graphic shows the trade weighted average tariff rates of major economies, based on data from the World Trade Organization.
Key Insights:
For the 170 members of the WTO, there is a baseline import duty that each country applies equally to member countries, known as Most Favored Nations (MFNs), unless a special trade agreement provides lower rates.
Prior to 2025, the U.S. had free-trade agreements with Canada, Mexico, and South Korea, but this has changed notably given Trump’s new stance on trade policy. Below, we show how tariff rates compare across nations, based on trade-weighted figures.
As the table above shows, the European Union has an average tariff rate of 2.7%, but this could jump significantly in retaliation to America.
Meanwhile, Taiwan and Switzerland have the lowest rates, standing at 1.7%. Japan follows closely behind, at 1.9%, with minimal tariffs designed to promote trade and economic growth.
By contrast, India’s average tariff rate is 12%, standing as the highest in the region. For select imports, such as cars, duties surge up to 100%.