The United States has once again resorted to imposing tariffs as a tool to navigate its international trade relationships. The recurrent use of these \"tariff sticks\" raises critical questions about their effectiveness in safeguarding American interests.
Amitav Acharya, a distinguished professor at American University, cautions that the overuse of tariff threats may lead to diminishing returns. \"When threats are used too frequently, they lose their impact,\" he explains. \"Countries may become desensitized, reducing the leverage that such measures are intended to create.\"
Acharya warns that unwarranted tariffs could set off a global butterfly effect. The interconnectedness of today's global economy means that imposing tariffs can lead to unintended consequences that ripple back to affect the United States. These consequences might include retaliatory measures from other nations, disruptions in international supply chains, and increased costs for American consumers and businesses.
\"The global economy is like a finely tuned machine,\" Acharya remarks. \"When one part is tampered with, it can cause the entire system to malfunction. Unilateral tariff impositions risk initiating a chain reaction that could ultimately harm the U.S. economy.\"
As the international community watches these developments, there is growing concern about the long-term implications of such trade policies. Stakeholders across Asia and the world are closely monitoring how these tariffs might influence global markets, economic stability, and political relations.
Reference(s):
Tariff overuse: Trump's gamble and the global butterfly effect
cgtn.com
