The United States has recently announced an additional 10% tariff on imports from the Chinese mainland, citing concerns over the fentanyl crisis as a primary reason. This move has sparked significant backlash from China, which has condemned the tariffs as a "repayment of kindness with hostility." In response, starting March 10, China has retaliated by increasing tariffs on U.S. goods and implementing non-tariff measures.
American economists are sounding alarms, warning that these tariffs could backfire and harm both economies. They draw parallels to the Smoot-Hawley Tariff Act of 1930, which led to a 70% drop in U.S. imports and exacerbated the Great Depression. To mitigate the economic fallout, the U.S. eventually enacted the Reciprocal Tariff Act of 1934, aiming to reduce tariffs and ease the economic crisis.
As the global economy becomes increasingly interconnected, the imposition of such tariffs raises concerns about potential long-term impacts on international trade and diplomatic relations. Young global citizens and business enthusiasts are closely monitoring these developments, understanding that the decisions made today could shape the economic landscape of tomorrow.
Reference(s):
cgtn.com
