OPINION: US 'reciprocal tariffs' to encounter increasing global backlash

More countries and regions are implementing and preparing countermeasures in response to the US' latest sweeping "reciprocal tariffs," with some national leaders reportedly urged companies to suspend planned investment in the US, and heads of international organizations warning the dire consequences of the imposition. 

In response to the US' "reciprocal tariff" policy announced Wednesday, which reportedly could affect over 180 countries and has faced strong opposition from multiple nations and regions, Canada has announced a 25 percent counter-tariff. The EU is preparing its own responses, Japan has called the situation a "national crisis." 

Canadian Prime Minister Mark Carney has announced a 25 percent counter-tariff on non-USMCA-compliant vehicles imported from the US, calling Washington's protectionist measures a "tragedy for global trade," Reuters reported.

The EU is also preparing countermeasures against the latest US tariffs, should negotiations with the White House fail, European Commission President Ursula von der Leyen said Thursday, according to CNBC.

French President Emmanuel Macron called on Thursday for European companies to suspend planned investment in the US after the US government announced sweeping global tariffs on American imports. Macron called the tariffs "brutal and unfounded" and a shock for international trade, and said that Europe must respond "industry by industry," according to Reuters.

Japanese Prime Minister Shigeru Ishiba said Friday that tariffs imposed on Japanese goods by the US administration are a "national crisis," the Xinhua News Agency reported. Ishiba said that US tariff hikes will have a significant impact not only on bilateral economic relations, but also on the global economy and the multilateral trade system.

The US' "reciprocal tariff" policy has caused financial markets turmoil across the worlds and hammered the US dollar, which has erased all its gains since Donald Trump's election in November due to the tariff-driven market disruption. 

International investment institutions warned that US tariff policies could affect the global economy and potentially trigger a recession in the US economy. UBS estimates the tariffs could cut US economic growth by 2 percentage points and push inflation close to 5 percent this year, according to AP.

The risk of a US and global recession this year have risen to 60 percent from 40 percent earlier on the heels of the US government's sweeping reciprocal tariffs, Reuters reported, citing JP Morgan.

Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, expressed deep concern on Thursday regarding the decline in global trade and the potential for an escalating tariff war sparked by US tariff measures, according to the Xinhua News Agency.

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), warned on Thursday that sweeping tariffs announced on Wednesday by the US pose a significant risk to the global economy at a time when growth has been sluggish. 

She stated that it was important to avoid actions that could further harm the global economy and appealed to the US and its trading partners to work constructively to reduce tensions, as reported by Reuters.

Written by Global Times.

Editor's note: The article reflects the author's opinions and not necessarily the views of Sino-Carib News.

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