US Effective Tariff Rate from all trading partners settles at 17-pct with July 31 duties: Fitch Ratings

Fitch Ratings has updated the U.S. Effective Tariff Rate (ETR) Monitor, its interactive tariff tool, reflecting the July 27 and July 31 announcements that set new reciprocal tariff rates for most trading partners. The U.S. effective tariff rate is now 17% — about 8 percentage points lower than our April 3, 2025, estimate when higher reciprocal tariffs were originally announced, but around 3 percentage points higher than our estimate at the end of June 2025.

The U.S. ETR of 17% reflects a 15% tariff rate on European Union goods, including auto and auto parts, and higher tariffs for major trading partners Brazil, Taiwan, India and Switzerland. The lower reciprocal tariffs on European Union goods, down from the 30% threatened early in July, would result in ETRs for individual EU countries that range from around 3% to over 18%. The ETR represents total duties as a percentage of total imports and changes with shifts in import share by country of origin and product mix.

The announcement confirmed a reciprocal tariff rate for Canada of 35% on non-United States-Mexico-Canada Agreement (USMCA) compliant goods, resulting in an ETR of 10% that incorporates 50% tariffs on aluminum, steel and copper. Tariffs on Mexico non-USMCA compliant goods remain at 25% while the U.S. trade negotiations continue. The ETR reflects our assumption that about half of previous tariff-free imports will ultimately be reclassified as USMCA compliant.

The U.S. has imposed a 15% reciprocal tariff rate on goods from countries with which it has a trade deficit and maintains a 10% baseline tariff for most other countries. Tariffs on China remain at 34%. Under the Aug. 1 tariff regime, China has the highest ETR of the U.S.’s major trading partners.

Changes to the ETR are possible over the coming days if new trade deals are announced.