Experts: U.S. 'will shoot itself in the foot' due to tariff obsession

On Wednesday, U.S. President Donald Trump signed an executive order to impose "reciprocal tariffs" on trading partners, calling the move a "declaration of economic independence" aimed at reshaping U.S. manufacturing and promoting economic revival. Experts have said the U.S. will "shoot itself in the foot" due to its tariff obsession.

In a chart on "reciprocal tariffs" presented by Trump, it shows that different countries and regions face different tariff rates.

For example, China will face a 34 percent tariff, the European Union 20 percent, Vietnam 46 percent, Japan 24 percent, India 26 percent, South Korea 25 percent, Thailand 36 percent, Switzerland 31 percent, Indonesia 32 percent, Malaysia 24 percent and Cambodia 49 percent.

The imposition of tariffs will inevitably raise domestic prices in the United States, increase the burden on citizens, and increase costs for many companies, Cui Fan, a professor at the University of International Business and Economics, told CGTN.

He said Trump's belief in the protectionist tariffs of over a century ago is outdated and impractical.

Despite Trump's imposition of 25 percent tariffs on steel imports in 2018, productivity in the U.S. steel sector, measured by output per hour, has declined by 32 percent over eight years.

Research from the Federal Reserve Bank of New York found that tariffs have reduced U.S. economic well-being by 3 percent, harming businesses and consumers alike. The steel industry, the poster child of Trump's tariffs, has seen employment levels stagnate. Even in 2023, steel jobs remained below their 2018 levels.

Xu Feibiao, director of the Center for BRICS and G20 Studies at China Institutes of Contemporary International Relations, said the tariff policy means that the United States will go further and further down the path of protectionism, which will be difficult to reverse.

For the U.S. allies, due to the policy of "America First," they are likely to increase bilateral and multilateral cooperation without the United States, increase the building of "strategic autonomy" capabilities to achieve "re-balance" of relations with the United States.

He also stressed that a number of developing countries will face "double shock." These countries have neither the economic strength and policy tools of developed countries nor sufficient market depth and economic flexibility to deal with the tariff moves.

Especially for countries highly dependent on the United States such as Mexico and Colombia, they may face sharp decline in economic growth, increasing domestic unemployment, debt and fiscal deficit, he said.

Xu also warned the "secondary impact" brought the U.S. discriminatory tariffs on key countries. Developing countries in Asia, Africa and Latin America that are closely connected to China and EU countries in terms of trade and industrial and supply chains will be affected.

In terms of wether Trump's tariff policy can continue to advance amid rising global opposition, Xu said the move has unilaterally torn up international agreements and violated international law, which is bound to trigger an international backlash.

If all countries jointly fight back against the unilateral actions of the United States, Trump will find it difficult to achieve his intended goals, he said.

He said if Trump's policies do not bring economic growth, improved employment and increased income, the domestic public will rise up in opposition, noting that in the more than two months since Trump took office, the U.S. has experienced economic slowdown, falling stock market, increased unemployment, and a declining approval rating.

Read more:

'America's trade policies back to 19th century': Media reacts to Trump's tariffs