The Costs and Consequences of U.S. Tariff Policy
by Lucio Blanco Pitlo III
The use of tariffs to address the United States’ trade imbalance with key trade partners will hamper longstanding U.S. economic leadership. Bilateral negotiations with concerned trade partners and WTO mechanisms would provide a less disruptive approach to settling trade disputes. Unilateral imposition of tariffs may invite retaliatory measures and trigger a trade war, which may spiral out of control. Allies and partners may suffer collateral damage, regional and global production chains may be affected, and it may set an unhealthy precedent for other countries to emulate in resolving trade disputes with partners. Against the backdrop of U.S. withdrawal from the TPP and efforts to renegotiate NAFTA, KORUS and the U.S.-Japan FTA, the Trump administration’s tariff policy may only exacerbate doubts about enduring U.S. commitment to uphold established trade regimes. Continue reading “The Costs and Consequences of U.S. Tariff Policy”