World Trade Organization Says Some Tariffs on Protective Goods for COVID-19 Are High
Trade in products that are in severe shortage during the coronavirus COVID-19 pandemic accounted for 1.7% of world trade in 2019, according to a new report from the World Trade Organization. Although many of the medical products that are traded face no tariffs in many countries -- medicines rarely face a tariff, and they account for more than half the traded value -- there are goods that still face high tariffs. The WTO said the average applied tariff for hand soap is 17% and the average tariff on protective gear such as gowns, gloves and masks is 11.5%.
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During the last three years, the United States was the largest importer of medical products, accounting for 19% of total world imports in 2019, and 8% of its total imports. Ireland was the top provider, with 17%; Germany was at 12%; Switzerland at 9%; China at 8%; and Mexico at 6%. Switzerland is home to the world's largest ventilator manufacturer.
At the same time, the U.S. is a major medical exporter, with a 12% share of all medical exports. Only Germany sold a larger share. The U.S. exported 35% the world's traded medicines, a quarter of medical equipment, 29% of medical supplies and 12% of the lower-value personal protective gear. China exported 49% of all traded personal protective gear, including 25% of the face masks. The U.S. exported 10.2% of the world's face masks.