Trade Barriers & Protectionism
Rising protectionism reshapes global commerce. New tariffs affected $2.6 trillion in imports during 2024-2025—a fourfold increase and the highest coverage in 15+ years.
Key Insights on Trade Barriers
Unprecedented Protectionism Surge
The value of imports affected by new trade barriers increased more than fourfold to $2.64 trillion (11.1% of global imports) in 2024-2025—the highest coverage since WTO monitoring began in 2009. This reveals risks of heightened, widespread protectionism.
Stockpile of Barriers Accumulates
Trade barriers have been accumulating since the 2008-09 financial crisis. G20 countries now have restrictions affecting 22% of their imports ($4.0 trillion)—up from 12.9% just one year ago. These barriers rarely get removed once implemented.
Uneven Tariff Landscape
Two-thirds of international trade occurs tariff-free through MFN treatment or FTAs. But the remaining third faces high barriers: textiles/apparel average 6%, agriculture remains highly protected, and South-South trade faces 15% average tariffs.
Trade Remedies Proliferate
WTO members initiated 32.3 trade remedy investigations per month in 2024-2025. Anti-dumping measures account for 46.5% of all trade measures on goods, as countries increasingly use legal tools to protect domestic industries from import competition.
Imports Affected by New Trade Barriers
Value of global imports subject to newly-imposed trade restrictions ($ billions)
Key Finding: After years of moderate growth, new trade barriers surged dramatically in 2024-2025 to affect $2,640B in imports—more than quadruple the prior period's $611B and the highest level in WTO monitoring history.
Average Tariff Rates by Country (2024)
Applied MFN tariff rates (% of import value)
Key Finding: Tariff rates vary dramatically—from near-zero in Singapore and Hong Kong to over 10% in developing economies. Agricultural products face higher protection globally than manufactures, reflecting political sensitivity of farming sectors.
Types of Trade Barriers (2024-2025)
Share of different trade restriction measures
Key Finding: Trade remedies (anti-dumping, countervailing duties, safeguards) account for 46.5% of measures, followed by tariff increases (28%), non-tariff barriers (15%), and quotas/licensing (10.5%). Remedies are the preferred legal tool for protection.
US Effective Tariff Rates by Trading Partner (2025)
Average tariff rate paid on imports from major partners (%)
Key Finding: China faces by far the highest US effective tariff rate at 37.1%, reflecting targeted trade war measures. Steel/aluminum products face 40% rates globally due to Section 232 tariffs, while most other partners face near the 2.2% US average.
Tariff Rates by Sector (Global Average)
Applied MFN tariff rates across product categories (% 2024)
Key Finding: Textiles and apparel face the highest average tariffs at 6%, reflecting protection of labor-intensive industries. Agriculture averages 5.8% despite high peaks in sensitive products. Electronics and machinery face lower rates (1-2%) due to supply chain integration.
Understanding Trade Barriers
Types of Trade Barriers
Tariffs: Taxes on imported goods, measured as % of value or specific amount per unit.
Quotas: Quantitative limits on imports of specific products.
Non-Tariff Barriers: Regulations, standards, licensing requirements, customs procedures that restrict trade.
Trade Remedies: Legal measures against "unfair" trade (anti-dumping duties, countervailing duties, safeguards).
Why Trade Barriers Are Rising
- Geopolitical tensions: US-China rivalry, sanctions, national security concerns
- Industrial policy: Protecting strategic sectors (semiconductors, green energy, steel)
- Job protection: Responding to manufacturing job losses and import competition
- Climate policy: Carbon border adjustments, environmental standards
- Pandemic lessons: Supply chain resilience, medical equipment self-sufficiency
Economic Impacts
Trade barriers increase consumer prices, reduce choice, protect inefficient domestic producers, and can trigger retaliatory measures. However, they may provide time for adjustment, protect infant industries, and address market distortions. The net effect depends on the specific context and design of measures.