Sectoral Tariffs
a.k.a. Sector-specific tariffs
Tariffs aimed at one industry, such as steel, cars or semiconductors, rather than at everything a country…
In plain English
Tariffs aimed at one industry, such as steel, cars or semiconductors, rather than at everything a country imports.
Sectoral tariffs zero in on particular industries. Instead of a blanket tax on all imports from a country, a government targets, say, steel, aluminium, cars or computer chips, often citing national security or the need to protect a strategic industry.
They can hit specific exporting countries hard: a car tariff matters enormously to Japan, Germany and Mexico. Traders watch which sectors are targeted to judge which currencies are most exposed.
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