Economists have warned that US President Donald Trump has "crossed the line" with his so-called "reciprocal tariffs" policies and risks causing economic self-mutilation by isolating the United States and ultimately forcing American citizens to pay the price.
Last week, Mr. Trump signed an executive order imposing a 10% "minimum base tariff" on all imports, with higher rates applied to certain trading partners. The impact of this policy has continued to reverberate around the world and has triggered panic in global financial markets, with analysts warning of significant risks and disastrous economic consequences.
In an interview with China Central Television (CCTV) on Tuesday, one day before the tariff measures officially took effect, J. Delgersaikhan, a professor at Mongolian University of Finance and Economics, stressed that excessive tariff policies were contrary to economic principles and hindered the economic progress of the United States.
Tariffs should fall within the scope of trade policy, but they have now clearly crossed the line. Current U.S. tariff policies have demonstrably deviated from basic economic laws. Such practices will not be sustainable in the long run. Imposing tariffs will not only lead to higher prices for foreign products, but also to higher prices for domestic products and their substitutes. Consequently, both American consumers and the economy will bear the brunt of the new tariffs, particularly inflationary pressure,” he said.
Dennis Munene, executive director of the China-Africa Center at the Africa Policy Institute in Nairobi, Kenya, stressed that the Trump administration's recent tariff policies have significantly undermined the legitimate rights and interests of various stakeholders, including American consumers.
“In the long term, if Trump does not change, we will see the United States become isolated. And this is now becoming a problem for American citizens. So, with the trade wars looming, allies will band together against the United States, and the biggest losers will be American citizens who have nothing to do with any of this,” said Mr. Munene.
For his part, Indonesian economic expert Tauhid Ahmad stressed the need for the United States to reassess its tariff policy, which has violated the rules of international trade and will have negative repercussions for nations around the world.
“I think the tariffs make our job worse, not just for one country, but for all. There are no rules for our trade. So, not only for Indonesia, but also for China, Europe, or other countries, if there are no rules, we will have to pay more as consumers, as citizens, like American citizens, because the price of the import tax also increases,” he said.
Mengistu Ketema, director general of the Ethiopian Economic Association (EEA), said that the US policy of imposing additional tariffs has disrupted the international trading system, causing damage to both itself and its trading partners.
"The tariff measure in general is not good, even for the United States, but the extent of the damage can vary from country to country. Countries for which the United States is the main trading partner will certainly be harmed," said Mr. Ketema.
