A turnaround in international trade: tariffs are rising again

By: Trademagazin Date: 2025. 02. 21. 11:26

After World War II, the average level of tariffs was around 30-40%, but in recent decades there has been a continuous decrease. Today, the import-weighted tariff is only around 2.5% worldwide, 1.5% in the United States, and even lower, around 1.4% in the European Union – said Balázs Horváthy, a researcher at the HUN-REN Social Science Research Center.

Globalization and the dismantling of trade restrictions have been a process that has lasted for many decades, but in recent years there has been a noticeable change: tariffs are starting to rise again, while new trade restrictions are emerging. The economic conflict between the USA and China is escalating, to the point that the US administration is already planning to introduce tariffs against Canada and the European Union.

According to the rules of the World Trade Organization (WTO), member states must provide the same benefits to all members, with the only exception being free trade agreements. Nevertheless, the United States has also imposed tariffs of nearly 25% on Canada and Mexico, which have trade agreements with it, citing national security concerns. Such claims are becoming more frequent, although they previously required strict and detailed justifications.

One of the WTO’s most important functions is dispute settlement, which has provided countries with the opportunity to resolve their trade conflicts through legal channels. However, since 2019, the dispute settlement mechanism has been practically paralyzed, as the US has blocked the appointment of members of the appellate bodies. Since the procedures can no longer make effective decisions, economic disputes between individual states can be much less resolved at the international level.