The United States is once again leveraging its infamous 'tariff stick' in an effort to protect national interests. However, experts are questioning the effectiveness of this strategy.
Amitav Acharya, a distinguished professor at American University, warns that the continual use of tariff threats may lead to desensitization among international partners and domestic stakeholders alike. This overreliance on tariffs not only undermines their intended protective measures but also risks sparking unintended consequences on a global scale.
Acharya explains that unwarranted tariffs can trigger a butterfly effect, causing ripple effects that may ultimately harm the U.S. economy. By disrupting global trade dynamics, these policies can lead to retaliatory actions from other nations, escalating trade tensions and potentially stalling economic growth.
Moreover, the persistent threat of imposing tariffs may erode trust and cooperation between the U.S. and its trading partners. In a world where economic interdependence is increasingly crucial, such strains can hinder collaborative efforts to address larger global challenges.
As the debate continues, it remains essential for policymakers to weigh the short-term benefits of tariff imposition against the long-term implications for both the U.S. and the global community.
Reference(s):
Tariff overuse: Trump's gamble and the global butterfly effect
cgtn.com
