Export Tariff in the United States

Export Tariff in the International Business Landscape

Definition of Export Tariff in the context of U.S. international business and public trade policy: Tax levied on goods as they leave the country.

The Trans-Pacific Partnership (TPP)

On October 05, 2015, the United States reached an agreement with its eleven partner countries, concluding negotiations of the Trans-Pacific Partnership. President Trump refused the Agreement.

The Agreement was a new, high-standard trade instrument that, according to the White House in the Obama Administration, “levels the playing field for American workers and American businesses, supporting more Made in America exports and higher-paying American jobs. By eliminating over 18,000 taxes – in the form of tariffs – that various countries put on Made in America products, TPP makes sure our farmers, ranchers, manufacturers, and small businesses can compete – and win – in some of the fastest-growing markets in the world. With more than 95 percent of the world’s consumers living outside our borders, TPP will significantly expand the export of Made in America goods and services and support American jobs. (…)

The Trans-Pacific Partnership levels the playing field for American workers and American businesses by eliminating over 18,000 taxes that various countries impose on Made in America exports, providing unprecedented access to vital new markets in the Asia-Pacific region for U.S. workers, businesses, farmers, and ranchers. For example, TPP will eliminate and reduce import taxes – or tariffs – on the following Made in America exports to TPP countries:

U.S. manufactured products: The Trans-Pacific Partnership eliminates import taxes on every Made in America manufactured product that the U.S. exports to TPP countries. For example, TPP eliminates import taxes as high as 59 percent on U.S. machinery products exports to the Trans-Pacific Partnership countries. In 2014, the U.S. exported $56 billion in machinery products to TPP countries.
U.S. agriculture products: The Trans-Pacific Partnership cuts import taxes on Made in America agricultural exports to TPP countries. Key tax cuts in the agreement will help American farmers and ranchers by expanding their exports, which provide roughly 20 percent of all farm income in the United States. For example, the Trans-Pacific Partnership will eliminate import taxes as high as 40 percent on U.S. poultry products, 35 percent on soybeans, and 40 percent on fruit exports. Additionally, TPP will help American farmers and ranchers compete by tackling a range of barriers they face abroad, including ensuring that foreign regulations and agricultural inspections are based on science, eliminating agricultural export subsidies, and minimizing unpredictable export bans.
U.S. automotive products: The Trans-Pacific Partnership eliminates import taxes as high as 70 percent on U.S. automotive products exports to the Trans-Pacific Partnership countries. In 2014, the U.S. exported $89 billion in automotive products to TPP countries.
U.S. information and communication technology products: The Trans-Pacific Partnership eliminates import taxes as high as 35 percent on U.S. information and communication technology exports to the Trans-Pacific Partnership countries. In 2014, the U.S. exported $36 billion in information and communication technology products to TPP countries.”