The imposition of a 10% Section 122 tariff on all countries leaves the weighted-average US tariff rate about 3.5%-points lower than was the case under the IEEPA framework, although the difference will narrow if President Trump follows through with his threat to raise the new baseline tariff to 15%. In either scenario, several economies – including Brazil, China and others in Asia – now find themselves in much better positions. This may not last, however, as the Trump administration intends to start Section 301 investigations into potential unfair trade practices, which would enable Trump to hike tariffs again.
Note: This report has been updated since publication to reflect that only the 10% tariff has been imposed as of 24/02/2026.
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