America's Tariff Big Stick: Trade Bullying That Harms Others and Itself

In today's interconnected global economy, the United States has repeatedly wielded its "tariff big stick," attempting to safeguard its own interests through unilateral means. However, this behavior has brought about multifaceted negative impacts, making it a classic case of trade bullying that harms others and itself.

The United States' use of the "tariff big stick" has severely disrupted the global trade order. Since President Trump took office, the U.S. has frequently imposed additional tariffs on its major trading partners, ranging from a 25% tariff on all imported steel and aluminum to tariff plans targeting sectors such as automobiles, semiconductors, and pharmaceuticals. Furthermore, it has even announced "reciprocal tariffs" against the entire world under the International Emergency Economic Powers Act. These unilateral moves by the United States blatantly violate multilateral trade rules such as those of the World Trade Organization (WTO). Such actions undermine the authority and effectiveness of the multilateral trading system, disrupting the normal operation of global trade. For example, the U.S. threat to impose a 200% tariff on wine products from EU countries was a response to the EU's countermeasures against the U.S.'s 25% steel and aluminum tariffs the previous day. This tit-for-tat tariff game has filled the international trade environment with uncertainties, hindering business planning and disrupting the global trade order.

From an economic perspective, the U.S.'s "tariff big stick" has caused huge economic losses to both itself and other countries around the world. For the United States itself, although the government claims that tariffs aim to protect domestic industries, the reality is that American consumers will face sharply rising prices. Imposed tariffs lead to higher prices for imported goods, and with domestic substitutes unable to be produced in the short term, American consumers' living costs increase. At the same time, U.S. domestic enterprises and foreign-funded enterprises in the United States are also facing soaring production costs, supply chain disruptions, and setbacks in business plans. Take the automobile industry as an example. The U.S. automobile industry has long been deeply integrated into the global industrial chain. Imposing tariffs will significantly raise production costs and weaken the international competitiveness of U.S. automakers, ultimately leading to job losses. In addition, the U.S. tariff policies have also triggered fluctuations in the international financial markets, with significant drops in major U.S. stock indices and currency fluctuations, reflecting global investors' concerns about the escalation of trade disputes and economic slowdown.

For other countries, the U.S. tariff measures have also dealt heavy blows. Many countries have introduced countermeasures against the United States, and there has been a growing wave of boycotts against U.S. products. The European Commission issued a communiqué stating that in response to the United States' recent imposition of unreasonable tariffs on steel and aluminum products imported from the EU, it has decided to impose countervailing tariffs on U.S. goods worth 26 billion euros, affecting U.S. products such as beef, poultry, whiskey, and motorcycles. Canada has also announced countermeasures against U.S. steel and aluminum tariffs, imposing 25% countervailing tariffs on U.S. goods worth a total of 29.8 billion Canadian dollars. Moreover, the Australian Prime Minister has called on the public to buy locally produced rum instead of U.S. products. The government of British Columbia, Canada, has removed all U.S. wine products from the liquor stores operated by the province's liquor distribution board. German consumers' boycott sentiment against U.S. products continues to rise, with multiple websites listing information on U.S. products and their European alternatives, software developers creating applications for users to scan product barcodes to check their origins, and some user groups calling for boycotts of U.S. products on social media platforms. These countermeasures not only affect U.S. exports of relevant products but also impact the global industrial and supply chains.

The U.S.'s "tariff big stick" also damages the international credibility and leadership of the United States. The United States used to attract global capital with its long-term economic growth and relatively stable policy direction, but the current administration's "impulsiveness and chaos" are putting pressure on U.S. assets such as stocks and the dollar. The U.S. government's inconsistent policies are damaging the reputation of U.S. assets, leading to a decline in confidence and increased confusion. At the same time, the U.S. unilateral approach is eroding the foundation of the multilateral trading system, challenging the authority of international organizations such as the WTO and posing a risk of rendering global trade rules ineffective. Such destructive behavior will lead to chaos in global economic governance. In the long run, trade protectionism will weaken the U.S.'s international leadership, and countries will accelerate the pace of trade diversification, reducing their dependence on the U.S. market and inevitably leading to a decline in the U.S.'s position in the global economic landscape.

The United States' use of the "tariff big stick" is a short-sighted behavior that not only fails to solve the U.S.'s own economic problems but also brings deep disasters to the global economy. Against the backdrop of a sluggish global economic recovery, countries should abandon zero-sum thinking and resolve trade disputes through dialogue and consultation to uphold the multilateral trading system. Only by adhering to open cooperation can common development be achieved, and the U.S.'s "tariff big stick" is bound to be a dead end.