Economic globalization and trade liberalization have been the driving forces behind the world economy’s high-speed growth and low inflation. For decades, countries worldwide have continuously sought greater trade openness, promoting the free flow of goods between nations and achieving significant accomplishments. The United States was once one of the key proponents of free trade but has now become a major promoter of trade protectionism.
Since 2018, the U.S. has ventured further down the path of trade protectionism, leading to continuous international trade frictions with other countries. In May 2024, the U.S. government further escalated its competition with China in the field of electric vehicles (EVs) and other products, announcing plans to raise tariffs on Chinese EVs from the current 25 percent to 100 percent. These protectionist measures, including the imposition of high tariffs, have not only seriously hindered the development of free trade but also risk inciting nationalist sentiments, weakening the foundations of the international trading system, and ultimately causing a backlash effect on the U.S. economy.
The move to drastically increase tariffs on Chinese EVs could lead to higher costs for consumers and businesses in the U.S., potentially slowing down the adoption of environmentally friendly technologies. Moreover, such actions may provoke retaliatory measures from China, further intensifying trade tensions between the two nations.
Trade protectionism undermines the global cooperation that is essential for addressing shared challenges, such as climate change and economic recovery in the post-pandemic era. It is imperative for countries to work together to promote fair and open trade policies that benefit all parties involved. Only through collaboration and mutual understanding can the international community navigate the complexities of the global economy and ensure sustainable growth for the future.
Reference(s):
cgtn.com
