US expert tariff escalation affects everyone

CNC
Added On July 13, 2018

With the world economy so intertwined, any escalation in trade tariffs is sure to hamper everyone.

 
That's according to an American expert, after the U.S. said it is considering higher levies on 200 billion dollars worth of Chinese goods. 
 
Michael D. Maher is a senior program advisor at Rice University's Baker Institute for Public Policy. 
 
He cautioned that America's new tariffs could come back to hurt U.S. businesses.
 
SOUNDBITE(ENGLISH): MICHAEL D.MAHER, Senior Program Advisor
"Impacting the ability of China's export to the U.S. actually can impact domestic companies because that's part of their supply chain."
 
Washington on Friday announced a 25-percent additional tariff on 34 billion U.S. dollars of imports from China.
   
And then on Tuesday, the U.S. said it might impose an extra 10 percent tariffs on an additional 200 billion dollars in Chinese imports.
   
The Trump administration is also pushing tariffs against other countries.
But with globalization and firms becoming more and more linked, Maher says it is hard to confine fallout to just one country.
 
SOUNDBITE(ENGLISH): MICHAEL D.MAHER, Senior Program Advisor
“…there is no such thing that is purely domestic company or purely foreign company. They are all becoming interwoven."
 
Instead of protecting its own domestic economy, Maher says the United States should pay more attention to the global economy.
 
SOUNDBITE(ENGLISH): MICHAEL D.MAHER, Senior Program Advisor
"Our future is tied not just to our domestic market, it's the global market. So if there is issues, let's get down and negotiate on them." 
 
According to Maher, over the past 40 to 50 years, a closer global trade system helped increase global economic growth. But unilateral tariff risks undoing all that.
 
SOUNDBITE(ENGLISH): MICHAEL D.MAHER, Senior Program Advisor
"Global trade tied people together not split them apart."