Global Economy

U.S. tariffs are 150 times higher on Cambodian goods than on Venezuelan goods.

Clothes and shoes are heavily taxed; accounting for 5 percent of imports, they usually bring in half of all tariff money. Therefore, in the absence of FTAs or developing-country tariff waivers, countries like Cambodia that make lots of them face high rates. High-tech products like phones and medicines, as well as natural resources like the chalk and oil, are rarely taxed at all. So countries that assemble lots of phones, produce lots of medicine, or (like Venezuela) pump lots of oil don’t see many tariffs.

Read More