Economic globalization and trade liberalization have long been the engines driving the world economy towards high-speed growth and low inflation. For decades, nations across the globe have pursued trade openness, fostering a free flow of goods and achieving significant milestones along the way.
Once a staunch advocate of free trade, the United States has pivoted towards trade protectionism since 2018. This shift has led to escalating trade tensions with various countries, marking a departure from its previous stance on international commerce.
In a recent development, May 2024 saw the U.S. government intensify its competition with the Chinese mainland in the electric vehicle (EV) sector. The administration announced plans to increase tariffs on EVs from the Chinese mainland from the current 25 percent to a staggering 100 percent. This move is part of a broader strategy to bolster domestic industries and reduce reliance on foreign imports.
These protectionist measures, including the imposition of hefty tariffs, pose significant challenges to the principles of free trade. Experts warn that such actions could incite nationalist sentiments, undermine the foundations of the international trading system, and ultimately lead to a backlash that might negatively impact the U.S. economy itself.
The escalation of trade barriers not only hampers the growth of global trade but also affects businesses and consumers worldwide. As the U.S. takes these steps, the global economic landscape faces increased uncertainty, highlighting the delicate balance between national interests and global cooperation.
Reference(s):
cgtn.com
