Global organizations and institutions have voiced concerns and opposition in relation to the US’s latest sweeping “reciprocal tariffs” on imports into the country.
On Wednesday, US President Donald Trump signed an executive order on the so-called “reciprocal tariffs,” imposing a 10 percent “minimum baseline tariff” and higher rates on certain trading partners set to take effect on April 5. Meanwhile, the country’s 25 percent tariffs on imported autos took effect on Thursday.
When asked about the latest US tariffs, a United Nations spokesperson expressed concern over “the rise of economic protectionism” and “its possible impact on the global economy,” China Daily reported.
The US tariff policies are adding to global uncertainties and will have a negative impact worldwide, European Central Bank President Christine Lagarde said on Wednesday.
China has said it firmly opposes the US’s “reciprocal tariffs” and will resolutely adopt countermeasures to safeguard its rights and interests. China has repeatedly emphasized that there is no winner in trade and tariff wars and that protectionism has no way out, Chinese Foreign Ministry spokesperson Guo Jiakun said at a regular press conference on Thursday.
Alongside worries that US tariffs would dampen global economic growth, economists have highlighted how these measures could also hurt the US as well.
The US Labor Department estimated that the new tariffs could push up the national consumer price index by about 2.3 percentage points, offsetting the effect of the US Federal Reserve’s rate cuts, reported China News Network.
The China International Capital Corporation (CICC) said the extent of the US’s latest tariffs exceeded market expectations, which might increase market uncertainty and increase the risk of “stagflation” in the US economy.
CICC calculations show that US tariffs could push up the country’s personal consumption expenditures inflation by 1.9 percentage points and reduce real GDP growth by 1.3 percentage points.
