U.S. tariffs may backfire

Cartoon by Ma Hongliang

U.S. President-elect Donald Trump recently announced plans to impose an additional 10 percent levy on Chinese imports and 25 percent tariffs on goods from Mexico and Canada after taking office.

The planned imposition of tariffs sparked opposition both at home and abroad. U.S. Treasury Secretary Janet Yellen said she was worried that Trump's plans to levy broad import tariffs could derail progress in quelling inflation, raise costs for households and businesses, and have adverse consequences on economic growth. Tariffs proposed by Trump would drag down the country's GDP by 1.1 percent in 2027 via their impact on prices and employment, according to a Nikkei estimate.

When the U.S. slaps on tariffs, it's actually American consumers who get stuck with the bill. By brandishing the "big stick" of tariffs, the U.S. not only throws a wrench into the global economic and trade system and the security of the global supply chain, but also forces American consumers to shell out more cash.