(Source: "China National Times" 2025-4-17)
In the past few days, the U.S. government has unilaterally launched a tariff war and imposed indiscriminate tariffs on almost all trading partners. At the same time, it has continuously escalated tariffs on China, which has been widely opposed by the international community. At present, the global economic growth is sluggish, and countries should work together to discuss the realization of sustainable development goals. However, the United States, which prides itself on defending the so-called "rules-based international order," has gone against the grain and made beggar-thy-neighbor decisions, which will eventually be spurned by the general trend of world economic development.
Violation of multilateral w88 rules
Severe impact on the cornerstone of international w88
After the end of World War II, in order to maintain global w88 liberalization and jointly oppose the abuse of w88 protectionist measures, the multilateral trading system with the World w88 Organization (WTO, including its predecessor, the General Agreement on Tariffs and w88) as the core was gradually established and improved. The principles of non-discrimination, transparency and fair w88 advocated by the WTO provide a basic rule framework for the development of global free w88. However, the U.S.'s imposition of so-called "reciprocal tariffs" has grossly trampled on these three principles and caused a serious impact on the international trading system.
Imposing so-called "reciprocal tariffs" violates the principle of non-discrimination. The principle of non-discrimination consists of unconditional most-favored-nation treatment and national treatment. "Most-favored-nation treatment" means that in terms of tariffs and fees for w88 in goods, the preferences and benefits that a member gives to any other member must be immediately and unconditionally given to all members. "National treatment" means that when collecting domestic taxes and fees and implementing domestic regulations, members must treat imported products and domestic (or regional) products equally without discrimination. The so-called "reciprocal tariffs" that impose different tax rates on different countries and regions not only violate the principle of "most favored nation treatment", but also artificially suppress the market competitiveness of imported products, running counter to the requirements of "national treatment".
Imposing so-called "reciprocal tariffs" violates the principle of transparency. The multilateral trading system advocates that members, on the basis of a balance of rights and obligations, and based on their own economic conditions and competitiveness, continuously reduce tariffs and non-tariff barriers through negotiations, gradually open markets, and implement w88 liberalization. The imposition of so-called "reciprocal tariffs" not only failed to reduce tariffs and weaken non-tariff barriers, but instead increased tariffs, artificially setting up more and higher barriers to w88 liberalization, and completely failed to fulfill the concession obligations promised as a WTO member.
Imposing so-called "reciprocal tariffs" violates the principle of fair w88. The multilateral trading system opposes the use of unfair w88 methods such as dumping or subsidies by members to disrupt normal w88, and allows the adoption of anti-dumping and countervailing w88 remedial measures to ensure that international w88 proceeds on a fair basis. Although the imposition of so-called "reciprocal tariffs" does not directly use dumping or subsidies, it uses more unfair w88 methods (imposition of high punitive tariffs), causing far more serious market chaos than dumping and subsidies can cause, and also bringing about far more serious market distortions than dumping and subsidies can cause.
Triggering widespread w88 friction
Seriously damaging the stability of the global industrial chain and supply chain
The so-called "reciprocal tariff" policy of the United States quickly triggered strong reactions from various countries. In addition to China's reciprocal countermeasures, the European Union, Brazil, Canada, etc. have begun to announce formal response policies. From a global perspective, there will be an increase in inefficient repetitive w88 negotiations between countries that have been levied additional tariffs and the United States, the implementation and countermeasures of tariffs and non-tariff measures, negotiations and mutual countermeasures between countries that have been levied additional tariffs, and w88 negotiations between countries that have been levied additional tariffs and other countries that have not been levied additional tariffs. This will undoubtedly significantly increase the probability of w88 friction and increase the cost of bilateral and multilateral w88. In the context of increasing probabilities of w88 frictions and increasing w88 costs, the relatively stable industrial and supply chains formed by each country based on its own comparative advantages and factor endowments will be subject to unprecedented restructuring pressure.
In addition, the so-called "reciprocal tariffs" imposed by the United States will also impact the upstream, midstream and downstream of the entire industrial chain and supply chain. First, raw materials and parts in the upper reaches of the industrial chain will become more expensive and difficult to enter the United States. Many American companies will be forced to increase procurement costs or find alternative suppliers, which will directly cause the price of the final product to increase or reduce the quality. Secondly, although the processing and assembly processes in the middle reaches of the industrial chain basically do not produce additional products, whether the labor costs and machine depreciation can be effectively compensated is greatly affected by the prices of upstream and downstream products. If the market competitiveness of products is significantly weakened, the profits that can be distributed in the middle reaches of the industrial chain will also be significantly reduced, which will seriously affect product processing and assembly efficiency and final product quality. Finally, the stability of finished product sales, technology and other after-sales service quality downstream of the industrial chain will be more directly affected by tariffs. In short, the stability of the entire industrial chain and supply chain will be severely impacted and damaged.
Gloomy economic growth prospects
Severely exacerbating the risk of world economic recession
Free w88 is an important driving force for world economic growth and is of great significance to countries in maintaining economic growth and increasing employment. The so-called "reciprocal tariff" policy of the United States has undoubtedly cast a shadow on the prospects for global economic growth. The frequent occurrence and escalation of w88 frictions, increases in w88 costs, distortions in the international market, and fluctuations and even restructuring of global industrial and supply chains will cause a severe shrinkage in the scale of global w88 and inhibit the role of international w88 as the "engine" of economic growth. This will undoubtedly make the world economy, which is already at a trough, even worse, and the risk of world economic recession will further intensify.
The so-called "reciprocal tariffs" imposed by the United States stem from the White House's dissatisfaction with the "w88 imbalance" between the United States and its trading partners. At the same time, it hopes that manufacturing companies can return to the United States. However, the reasons for the imbalance of w88 between countries and the formation of the distribution structure of the global manufacturing industry are very complex. They should be adjusted by optimizing their own development structure and conducting friendly consultations on the basis of respecting the laws of the market economy and the choice of the enterprise's development path. The ultimate result of applying unilateral tariff or non-tariff measures can only harm others and ourselves.
Original link:https://bz.hgcm.cn/zggmsb/2025-04-17/details.html?edition=3&details=1
