The United States ranks 61st out of 122 countries on the index measuring indexes that measure trade barriers through tariffs or non-Lewy-based restrictions, published this week by the Tholos Foundation, a US think tank founded by the former president and free marketing Ronald Reagan in the 1980s.
The position was dragged onto the list as a result of non-tariff barriers to trade and the limited number of trade deals that the country has been hit, Index found.
A think tank report with the index said the list was compiled prior to the announcement of the infamous “liberation date” of so-called “mutual tariffs.” If these tariffs are crystallized, the US will plummet near the bottom of the rankings – 113th overall and last in the tariff pillar, Tholos discovered.
In the index, Tholos assesses both direct and indirect trade barriers in 122 countries, covering regions that account for 80% of the world’s population and 97% of the world’s gross domestic product (GDP).
Hong Kong, Singapore and Israel were top of the rankings due to the lowest trade barriers, while Russia, India and Indonesia were the lowest due to the large-scale use of restrictions.
“The index shows that prosperity, economic freedom and environmental performance improves in countries with low trade barriers,” the foundation said in a press release.
Research shows that 18 most open countries account for just 5.35% of the world’s population, but generate 21% of the world’s GDP. In contrast, the three most restrictive countries own 21% of their population, but only contribute 6% of the world’s GDP.
The index also shows that low-income countries in South Asia and Central Eastern Europe are dependent on tariffs, while high-income countries use more non-tariff barriers and digital trade is increasingly restricted. Lower and middle-income countries in South Asia and Latin America impose the most restrictions on services.
The index is based on four pillars: tariffs, service restrictions, non-tariff barriers and trade facilitation. The latter assesses behind the scenes conditions that affect trade.
European Union critics
The index negatively assesses the impact of EU regulations on trade. “The Digital Markets Act, Digital Services Act, AI Act, proposed cloud authentication schemes, and other regulations in the European Union impose restrictions that discriminate against content, market size, and the physical location of data storage and processing,” Tholos said in a press release.
These regulations claimed that foreign companies have restricted the release of hardware and software in the EU market, resulting in voluntary export controls that have embarrassed their jurisdictions to avoid restrictions.
