Global organizations are voicing concerns over the United States’ latest “reciprocal tariffs” on imports. On Wednesday, US President Donald Trump signed an executive order imposing a 10% minimum baseline tariff, with higher rates on certain trading partners, effective April 5. Additionally, 25% tariffs on imported automobiles took effect on Thursday.
A United Nations spokesperson expressed worry over “the rise of economic protectionism” and its potential impact on the global economy. European Central Bank President Christine Lagarde echoed these sentiments, stating that the US tariff policies are increasing global uncertainties and could have negative repercussions worldwide.
China has firmly opposed the US’s new tariffs and has proclaimed its intention to adopt countermeasures to safeguard its rights and interests. Chinese Foreign Ministry spokesperson Guo Jiakun reiterated that there are no winners in trade and tariff wars and emphasized that protectionism is not a viable path forward.
Economists warn that these measures may also harm the US economy. The US Labor Department estimated that the new tariffs could raise the national consumer price index by about 2.3 percentage points, potentially offsetting the effects of the Federal Reserve’s rate cuts.
The China International Capital Corporation (CICC) noted that the scope of the US’s latest tariffs surpassed market expectations, heightening market uncertainty and increasing the risk of “stagflation” in the US economy. CICC’s calculations suggest that the tariffs could push up personal consumption expenditures inflation by 1.9 percentage points and reduce real GDP growth by 1.3 percentage points.
