The United States’ counter-multilateralism trade policy stands as one of the gravest dangers to the global economy. As the 2024 presidential election approaches, it appears that this policy direction is unlikely to change, no matter who secures the White House.
Former President Donald Trump, under the banner of “Making America Great Again” (MAGA), initiated a sweeping unilateral trade offensive. This included imposing tariffs on over $350 billion worth of imports from China, as well as tariffs on steel and aluminum from other countries. These actions effectively paralyzed the World Trade Organization (WTO) appellate body, undermining the multilateral trading system that the WTO represents. The Office of the U.S. Trade Representative’s 2018 Presidential Trade Policy Agenda bluntly stated that current multilateral trading rules are “directed to the U.S.”, after which a significant decline in China-U.S. trade occurred.
In his current 2024 presidential campaign, Trump has pledged to impose even harsher measures, including 60 percent tariffs on imports from China and across-the-board tariffs of 10 to 20 percent on all imports from around the world.
Meanwhile, President Joe Biden, despite claiming a return to multilateralism, has maintained his predecessor’s unilateral tariffs policy. He has even added new tariffs on Chinese solar panels, lithium batteries, and electric vehicles. Furthermore, his administration has pursued a broader trade and investment strategy centered on concepts like “resilient supply chains” and a “small yard, high fence” approach. This strategy aims at a fundamental fragmentation of world trade based on value systems.
The continuation of these policies signals a sustained shift away from the multilateral trade framework that has underpinned global economic growth for decades. The implications for international trade are profound, potentially leading to increased economic fragmentation and heightened tensions among trading nations.
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US counter multilateralism trade policy: Gravest danger to the world
cgtn.com
