(ECNS) -- The Trump administration's continued push for higher global tariffs has provoked widespread concern, sparking protests at home and criticism from global partners.
Chinese expert Gao Jian warns that current conditions signal the collapse of the U.S.-led international free trade order and threaten to destabilize both global markets and the American economy.
Over the past century, the most significant public good that the U.S. could offer to the world was an open market, said Gao, director of the Center for British Studies, Shanghai International Studies University.
He noted that if the U.S. enacts trade protectionist policies, it would undermine the global free trade system that it has long advocated. Besides, launching a trade war affords its domestic economy no real benefits.
Gao pointed out that the Trump administration's tariff policy would inevitably trigger collective retaliatory tariffs from countries around the world, deal a huge blow to American enterprises.
He believes tariffs would eventually become a tax on goods, and that American consumers will further bear the pressure of inflation. Protests and demonstrations across the U.S. have already sent a very clear message that such a result is not in line with American sentiments and serves a fatal blow to Trump's position in power, Gao noted.
World trade mechanisms based on the theory of free trade were built by consensus among countries. The basic principle of equality and reciprocity has helped ensure the economic prosperity and development of the world over the past half century, he explained.
Gao pointed out that any sovereign state has an inalienable right to development. Even European countries that are highly dependent on the U.S. for geopolitical security will never accept economic bullying by the U.S.
European Union (EU) member states voted Wednesday to approve retaliatory tariffs on $23 billion in goods in response to Trump's 25 percent tariffs on imported steel and aluminum, according to AP.
Gao said Europe must defend its right to development based on its own economic strength, otherwise, the euro system will be in danger of collapse, placing EU existence in question. "A united EU could be a strong economic force to counter American bullying."
(By Gong Weiwei)
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