Washington: The United States’ (US) sweeping tariffs, and the inevitable retaliatory measures, are a dangerous and misguided approach to trade.

According to BERNAMA News Agency, unlike targeted, bilateral negotiations, these broad tariffs inflict widespread economic damage. The claim of “reciprocity” is a fallacy; trade surpluses don’t necessarily equate to manipulation.

These tariffs will stifle global growth, inflate prices, and exacerbate unemployment, disproportionately harming middle and lower-income families, including those in the US. This is a classic “beggar-thy-neighbour” strategy, aiming to artificially boost domestic demand and production at the expense of trading partners.

The notion that exporters bear the tariff burden is false. Increased costs are passed directly to US importers and consumers, making everyday goods more expensive. These tariffs are effectively a tax on the American people. Sure, exporting nations will suffer reduced competitiveness and demand for their goods in the US. But,
the ripple effects through complex global supply chains will amplify the stagflationary impact of these tariffs across countries, and the US will not be spared.

Nations deeply integrated into global supply chains, particularly in Southeast Asia, face a grim prospect: deteriorating balance of payments, weakening currencies, slowed growth, and surging inflation. The US has ignited a trade war, unleashing a multi-faceted threat to the global economy. The potential for catastrophic damage is real, likely far exceeding current projections.

There is an urgent need for responsible leadership, especially from the US, to avert a global economic crisis. This is not a time for reckless protectionism; it is a time for reasoned diplomacy.