Tariffs hurt global trade: Experts

Experts hold that tariffs are harmful to global trade. The reasons are mainly reflected in disrupting the normal order of trade, increasing the cost of enterprises and consumers, and undermining the stability of the industrial chain. The specific analysis is as followsisrupting the normal order of trade: Tariffs, as a form of trade - protection policy, will trigger trade frictions and retaliatory measures among countries. For example, the US government 's “reciprocal tariffs” policy has pushed it to a confrontational situation with the world. After the US imposes high - tariffs, other countries will inevitably take retaliatory measures, which will lead to the upheaval of the global trade landscape, making the free - trade mechanism fall into uncertainty, and bringing a huge impact on the world 's multilateral trade rule system and business practices.Increasing enterprise and consumer costs: From the enterprise perspective, tariffs will increase the cost of imported raw materials and intermediate products, squeeze the profit space of enterprises, and affect the layout and operation of the global industrial chain. For consumers, tariffs will lead to rising import prices, increasing the financial burden of the public. Bahrain University professor Anis Khayati pointed out that the increase in tariffs will increase the cost pressure on importers, and Middle - Eastern importers may ultimately be forced to pass on the costs to consumers, thus increasing the financial burden on the general public.Undermining the stability of the industrial chain: High tariffs will disrupt the global industrial chain and supply chain, and distort the global market resource allocation. The US government has tried to force the return of manufacturing through tariffs, but in fact, tariffs will be transmitted through the industrial chain and supply chain, intensifying the risk of supply - chain disruption and industrial hollowing - out. German Mechanical Engineering Industry Association warned that the US - imposed punitive tariffs will cause serious damage on both sides of the Atlantic, which will not only affect the export interests of European enterprises, but also seriously hinder the transformation and upgrading of the US industry itself.Weakening market confidence: The uncertainty of tariffs may weaken consumer and business confidence, and intensify financial market fluctuations. International Monetary Fund pointed out in a report that the US - imposed tariffs will reduce global demand in the short - term, lead to rising import prices, and further intensify inflationary pressures. This will make enterprises more cautious in investment and production decisions, and consumers reduce consumption, thus hindering the development of global trade.