Holding trade flows at 2024 levels, the change in tariff policy alone would have lowered the ETR to 8.4%. It was then replaced by Section 301 tariffs on products from economies covered by the U.S. Trade Representative’s forced-labor investigations. Imports from countries including Mexico, Canada, India and the U.K. face a fixed additional tariff of 10%, while imports from China, Vietnam and most other investigated economies face a fixed additional tariff of 12.5%. For the EU and Taiwan, the Section 301 tariff is set so that the combined most-favored-nation, or MFN, tariff and Section 301 rate do not exceed 10%. Fitch’s ETR estimate also incorporates the separate 25% Section 301 tariff on Brazil, which is subject to significant product exclusions.