**Washington**: The US government has implemented steep tariffs affecting imported products, while President Trump announced a 90-day suspension. Economic analysts criticise these measures as coercive and detrimental to global cooperation, cautioning that they may disrupt decades of globalisation and investment.
On Wednesday morning, a new phase of steep tariffs imposed by the United States government came into effect, impacting a wide array of products imported from numerous countries around the globe. On the very same day, U.S. President Donald Trump announced a 90-day suspension on tariffs affecting most nations, marking a significant shift in policy amid ongoing international trade tensions.
This recent development has drawn criticism from various economic analysts, including Dan Steinbock, founder of the Difference Group. Steinbock characterised the U.S.’s actions as a form of tariff coercion rather than a genuine adjustment of policy. He remarked that these measures build on existing tariffs that are “unwarranted” and identified “flawed reciprocal tariffs calculated erroneously.” According to Steinbock, the latest tariffs align more closely with “economic blackmail” than with the principles of international cooperation.
Steinbock elaborated, stating, “It is a protectionist plan and devoid of an economic rationale.” He stressed that the so-called ‘reciprocal’ principle, if genuinely applied, would relate to far more moderate tariffs: a 12% tariff against Vietnam instead of 46%, a 10% tariff against China instead of 34%, and a 10% tariff against the European Union rather than the current 20%. These figures were based on data from the American Enterprise Institute.
This view resonates with broader economic sentiments, as Steinbock noted that most international economists regard such tariffs as disconnected from economic principles, labelling them as “blackmail and bullying” that disproportionately affect nations in the Global South. He also highlighted that these tariffs could be seen as an attempt by the U.S. to undermine the competitive advantages of other nations within the global industrial chain, potentially reshaping international markets in a way that secures American dominance in the global economy.
Steinbock further observed, “The U.S. administration mistakes ‘medicine’ with poison and ‘negotiations’ with paying tribute.” He cautioned that these tariff policies could disrupt decades of post-war globalisation, which had thrived on collaborative efforts among countries and structured distribution along value chains. He warned that the world may witness a declining trend in investment as a direct consequence of these unilateral actions, suggesting that the current trajectory could unravel the economic integration achieved over recent decades.
As the international community continues to navigate these changes, the implications of America’s tariff policy remain to be fully realised, with analysts observing that if unchallenged, such unilateral tariffs may threaten the future of global economic cooperation.
Source: Noah Wire Services
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