International trade has been an essential driver of economic growth for many countries around the world. However, various barriers hinder the smooth flow of goods across borders. Tariffs and non-tariff barriers (NTBs) are the most common forms of such barriers. The state of active tariffs and non-tariff barriers in the international trade of goods in 2023 :

Active Tariffs

A tariff is a tax imposed by a government on imported goods. Its primary purpose is to protect domestic industries and increase revenue for the government. Tariffs can be specific, based on the quantity of goods imported, or ad valorem, based on the value of the imported goods.

In recent years, there has been a rise in global protectionism, and many countries have increased their tariff rates. The United States, for example, has been at the forefront of imposing tariffs, especially on China. In 2018, the US imposed tariffs on $250 billion worth of Chinese goods, with China retaliating with tariffs on $110 billion worth of US goods. The two countries have since engaged in a trade war, which has resulted in a significant impact on global trade.

In 2023, it is likely that the US will continue to impose tariffs on Chinese goods, as well as goods from other countries. Other countries, such as India and Turkey, have also increased their tariff rates. These actions are likely to have a significant impact on global trade, leading to increased prices for goods and reduced demand.

Non-Tariff Barriers

Non-tariff barriers (NTBs) are any barriers to trade that do not involve tariffs. NTBs can include regulations, quotas, and administrative procedures. Unlike tariffs, which are explicitly designed to restrict trade, NTBs are often used to achieve other objectives, such as protecting human health and safety, the environment, or cultural values.

In recent years, there has been an increase in the use of NTBs, particularly by developed countries. These barriers often target developing countries, hindering their ability to participate fully in global trade. NTBs can include technical standards that are difficult for developing countries to meet, as well as complex and expensive certification procedures.

In 2023, it is likely that the use of NTBs will continue to increase. The COVID-19 pandemic has highlighted the importance of health and safety regulations, leading to an increase in their use. There is also a growing trend towards environmental regulations, which could create additional NTBs.

Active tariffs and non-tariff barriers are significant hindrances to international trade. In 2023, it is likely that we will continue to see an increase in the use of both. The rise of protectionism and the impact of the COVID-19 pandemic are likely to be the main drivers of this trend. However, it is important to note that protectionism and NTBs can have significant negative impacts on the global economy. Policymakers must work towards reducing barriers to trade and ensuring that the benefits of international trade are available to all countries and people, regardless of their level of economic development.