Pharmaceuticals, motor vehicles, electronics, textiles, and electricals, are most exposed globally to US-imposed tariffs, while food is among the least affected, according to a Tariff Sector Vulnerability Index.
The index developed by Oxford Economics following the barrage of U.S. tariff announcements aims to provide insights for strategic planning and supply chain management amid shifting trade dynamics.
Based on the index, pharmaceuticals and autos are heavily exported to the US. Aggregated together, exports of pharmaceuticals to the U.S.—largely from Europe—account for the largest share of sales globally.
Motor vehicles and parts are also heavily exported to the U.S. North American automotive supply chains are highly integrated, with parts often crossing borders several times before final assembly.
Outside of North America, both Japan and South Korea also export a large share of automotive sales to the US. Other manufacturing (including toys and furniture), electronics, and textiles also export a relatively large share of sales directly to the U.S.
In contrast, the index showed that food and beverage manufacturing sector, non-metallic minerals, refined fuel, basic metals, and paper and printing are among the least vulnerable sectors to tariff disruptions. Both globally and in the US, these sectors tend to be more domestically oriented with shorter supply chains.
The index also noted business confidence and investment have larger impact on global growth than the indirect impact of tariffs themselves. “This will amplify the impact on many of the sectors that are directly vulnerable to tariffs,” stated Oxford Economics, a leading global economic advisory firm, providing data-driven insights and forecasts to help clients navigate complex economic landscapes.
