Legacy Foreign Tariffs Outpace U.S. Rates, Creating Trade Imbalance

A Tilted Trade Playing Field

The U.S. confronts a punishing reality: its trading partners slap higher tariffs on American goods than the U.S. imposes back, widening a $1.2 trillion trade deficit in 2024. While U.S. tariffs average a lean 2.5 percent—one of the world’s lowest—Canada hits 4.2 percent, Mexico 7.1 percent, China 7.3 percent, and the EU 4.2 percent on U.S. exports. This gap saps American competitiveness, costing jobs and revenue vital to fiscal stability.

Exports totaled $1.9 trillion in 2024, dwarfed by $3.1 trillion in imports. Social Media posts decry this imbalance, spotlighting high foreign tariffs on key U.S. products as a drag on economic independence.

Canada and Mexico: North American Barriers

Canada’s supply management system hammers U.S. dairy exports with steep tariffs under the USMCA. In 2024, milk faces 241 percent, cheese 245 percent, and butter 298 percent beyond a $1.14 billion quota taxed at 7.5 percent, slashing U.S. sales from $42.8 billion in 2022 to $29.25 billion. Canada’s 25 percent tariff on U.S. steel, set in 2018, persists, hitting $2.5 billion in exports against a $63.3 billion deficit.

Mexico, with a $172 billion deficit, levies 15 percent on U.S. pork—$1.8 billion in exports—and 25 percent on cheese outside quotas, unchanged since 2018. Total U.S. exports to Mexico ($249 billion) lag imports ($462 billion), with tariffs undermining American farmers and manufacturers. These barriers erode the USMCA’s promise, demanding reciprocity to protect taxpayer interests without bloating government aid.

China’s Costly Levies

China, driving a $296 billion deficit, imposes 7.3 percent average tariffs, with U.S. goods facing far harsher rates. Soybeans, $12 billion in exports, carry a 25 percent duty from 2018, dropping sales from $14 billion in 2017 to $9 billion by 2024 as Brazil gains ground. Pork, at $1.2 billion, and cotton, $800 million, also face 25 percent tariffs, while aircraft parts ($6 billion) hit 5-10 percent.

U.S. exports to China totaled $148 billion against $444 billion in imports. These tariffs shrink markets for American producers, fueling calls for matching China’s rates—a lean fix to boost revenue and curb deficits without expanding bureaucracy.

Europe’s Targeted Taxes

The European Union, with a $213 billion deficit, applies a 4.2 percent average tariff, doubling U.S. rates. Whiskey, $700 million in exports, and motorcycles, $300 million, bear 25 percent duties since 2018, retaliation for U.S. steel tariffs, impacting $6 billion total. Peanuts, $200 million, face 10-25 percent, and soybeans, $2.5 billion, hit 7.5 percent outside trade deals.

U.S. exports to the EU reached $363 billion, far below $576 billion in imports. These levies favor European producers, squeezing American market share and underscoring the need for tariff parity to safeguard economic liberty without costly interventions.

Fiscal Strain of Unfair Trade

Foreign tariffs yield no U.S. revenue, unlike the $80 billion from domestic duties in 2024, a sliver of $3 trillion in income taxes. Canada’s dairy wall, Mexico’s pork levies, China’s soybean duties, and the EU’s whiskey taxes collectively cost billions in lost exports, deepening deficits. This one-sided hit forces borrowing, burdening taxpayers.

Matching foreign rates could raise billions, easing fiscal pressure without new taxes. It’s a practical step to level trade, aligning with limited government by letting markets, not subsidies, drive recovery.

A Call for Reciprocity

The U.S. collects just 2 percent of revenue from tariffs, versus a global 11 percent average, reflecting an open-market stance exploited abroad. Partners tax U.S. goods—dairy, pork, soybeans, whiskey—at rates dwarfing America’s, tilting trade against its producers. Social Media posts demand fairness, arguing this harms economic strength.

Raising U.S. tariffs to match isn’t retreat—it’s accountability. Targeting Canada’s 298 percent butter rate, China’s 25 percent soybean levy, or the EU’s 25 percent whiskey duty could boost exports, trim deficits, and fortify the economy, keeping government lean while honoring taxpayer value.