The United States has once again weaponized its tariff policy by imposing tariffs on Canada, Mexico, and China. While Washington claims that imposing tariffs would reduce its trade deficit with these countries and increase fiscal revenue, the move poses significant risks to global markets.
Using tariffs as a bargaining chip in negotiations may offer short-term gains, but in the long run, it creates tensions in the global market and disrupts supply chains. Such actions are akin to setting off a time bomb in international trade, with potential repercussions that could ripple across economies worldwide.
The imposition of tariffs can lead to retaliatory measures, escalating into a full-blown trade war. History has shown that there are no winners in such conflicts. Instead, they result in increased costs for businesses and consumers, erode investor confidence, and hinder economic growth.
As global economies are interconnected, the effects of a trade war extend beyond the countries directly involved. It is imperative for nations to seek collaborative solutions that promote fair trade practices and foster economic stability.
Reference(s):
cgtn.com
