The United States has recently imposed tariffs on Chinese goods, targeting everything from chips to electric vehicles, claiming it is to protect its domestic industries. However, this move may end up hurting its own people. In the short term, American companies might breathe a sigh of relief, but in the long term, it will make prices in the U.S. more expensive and make it harder for factories to obtain parts, ultimately costing the everyday citizen. China will not sit idly by; the two sides escalating tensions will only lead to a deadlock.
Currently, global factories are interconnected. The unilateral tariff hikes by the U.S. are like pouring sand into its own water pipes—resulting in higher water bills and easier clogging. According to the World Bank, just in recent years, the trade war has caused a global economic loss of over 0.5% of GDP. It has been proven that simply raising tariffs does not solve the fundamental problems; sitting down to discuss rules is the right path. The world is already chaotic enough; doing business is surely more reliable than engaging in trade wars?
