In recent discussions surrounding international trade, former President Donald Trump claimed that Canada is "one of the highest tariffing nations anywhere in the world." This statement has sparked debate and necessitates a closer examination of the data regarding tariff rates. According to the World Bank, Canada had a lower average tariff rate of 1.37% in 2022, compared to the United States, which had a rate of 1.49%. These figures indicate that Canada's tariffs are not among the highest globally; rather, they are relatively low.
The World Bank's data reveals that Bermuda had the highest tariff rate in 2022 at 29.52%. In contrast, Canada ranked 102nd out of 137 countries in terms of tariff rates, indicating a much lower position than suggested by Trump's claim. Furthermore, Canada imposes no tariffs on most U.S. goods, and its dairy tariffs only apply after the U.S. has reached a previously negotiated zero-tariff sales quota.
In comparison to other nations, Canada maintains a competitive tariff rate. For instance, India had a tariff rate of 11.46% in 2022, South Korea stood at 8.63%, Brazil at 7.44%, and Mexico at 4.75%. All these countries have higher rates than Canada. On the other hand, China and the United Kingdom had slightly lower rates at 3.09% and 3.07%, respectively, while Japan's rate was marginally lower at 1.64%.
Despite having a slightly higher average tariff rate than some major economies like China, the United Kingdom, and Japan, Canada's rates are substantially lower than many others. Notably, Canada's tariffs are not hindering U.S. exports significantly as the U.S. is not currently filling its zero-tariff sales quota in any category of dairy product. This means that the tariffs are not being applied.
Economists have weighed in on the accuracy of Trump's statement. Dartmouth College economics professor Douglas Irwin remarked on "the overwhelming proportion" of goods that Canada exempts from tariffs. Additionally, Scott Lincicome, vice president of general economics and trade at the libertarian Cato Institute think tank, dismissed Trump's assertion as "nonsense."
These expert insights underscore the disparity between the claim and the factual data available. The World Bank figures further corroborate that Canada's position in global tariff rankings does not align with being one of the highest tariffing nations.
