Fact Check: Are high tariff rates a characteristic of poorer countries?
Yes
Countries with lower GDPs tend to have high tariffs.
According to the World Tariff Profiles 2024, Tunisia (19.5%) and Algeria (18.9%) had the highest tariff rates in 2023; their GDP per capita that year was $3,678 and $5,364. The next highest average tariff rates were in Gabon, Congo, Chad, Central African Republic, and Cameroon (all at 18.1%)
Nations with higher GDP per capita figures in the WTO dataset such as Iceland ($79,637) and Australia ($64,820) traditionally charge lower tariff rates (3.3% and 2.4%, respectively).
Poorer countries often have lower tariff rates due to the logistical difficulty of monitoring and acquiring other revenue (such as income taxes).
The WTO dataset shows the United States with a tariff rate of 3.3% in 2023, in line with that of other rich countries. But, according to the Budget Lab at Yale, recent tariff policy proposals will increase the average tariff rate to 28%.
This fact brief is responsive to conversations such as this one.
Sources:
World Trade Organization World Tariff Profiles 2024
World Bank GDP per capita (current US$)
The Budget Lab at Yale State of U.S. Tariffs: April 15, 2025
House of Lords Library US tariffs: Background, perspectives and impact on the UK
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