Sri Lanka, May 13 -- Fitch Ratings has updated the U.S. Effective Tariff Monitor following the Joint Statement on U.S.-China Economic and Trade Meeting in Geneva, May 12, 2025, that reduces reciprocal tariffs. Fitch estimates that the U.S. effective tariff rate (ETR) is now 13.1%, a notable decline from 22.8% prior to the statement.
The 34% reciprocal rate imposed by the U.S. on April 2, 2025, is suspended for 90 days, and the subsequent increase in the reciprocal rate announced on April 8 and 9 is cancelled. While the tariff agreement is a significant de-escalation, a U.S. ETR of around 13% was last seen in 1941 and remains much higher compared to 2.3% at the end of 2024. The ETR represents total duties as a percentage of total imports an...