Why US should abandon 'reciprocal tariffs' approach and re-engage in constructive dialogue

Editor's note: Xue Tianhang is an associate researcher at the Research Center for Regional Coordinated Development, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

On Wednesday, the US government began imposing "reciprocal tariffs" on its trade partners which could match the levies that other countries impose on American products.

The US claims that these "reciprocal policies" aim to "erase trade deficits" and address "other unfair and imbalanced trade issues" with its trade partners.

However, despite the use of the term "reciprocal," if we closely examine the US government's policy proposals, we would find that this so-called "reciprocity" is nothing but an unfair, unilaterally rule imposed by the US, rooted in unjust unilateral practices. 

This approach not only severely undermines the multilateral trade system but also exacerbates global trade tensions and economic fragmentation.

Firstly, the "reciprocal tariffs" proposed by the US violate the World Trade Organization's (WTO's) principle of reciprocity, which emphasizes a balance of rights and obligations rather than absolute parity in tariff levels. 

As countries are at different stages of development, the US's insistence on "uniform tariff rates" after the country itself has moved past a developmental phase where it needs protection has effectively striped developing countries of their rights to progress. 

In contrast, China has unilaterally granted tariff concessions, giving 43 least-developed countries zero-tariff treatment for 100 percent tariff lines without demanding anything in return. 

This is an exemplary adherence to the WTO's principle of reciprocity. 

Moreover, "reciprocal tariffs" contradict the WTO's most-favored-nation principle. 

As Chad Bown, a senior fellow at the Peterson Institute for International Economics, has pointed out, the US's imposition of different tariffs on different countries has blatantly violated WTO members' commitment to non-discrimination. 

If the US raises tariffs above the agreed-upon ceilings in its negotiations with other WTO members, it would again violate WTO rules. 

Finally, the US's "reciprocal tariffs" are neither efficient nor practical. 

Due to the differences in product competitiveness, countries set tariffs on specific product categories and pursue reciprocity through the exchange of market access in trade agreement negotiations. 

The Trump administration's sweeping approach to tariffs is, in fact, against fundamental economic principles, reflecting a zero-sum mindset and serving as a new tool for trade protectionism.

Since taking office, Trump has repeatedly wielded tariffs as a weapon, severely disrupting global supply chains and stifling global trade development. 

This has inflicted significant welfare losses on consumers and entrepreneurs worldwide, including those in the US itself. 

According to the latest data from the Conference Board, a New York think tank, consumer confidence in March dropped to 92.9, falling short of the market expectations of 94.2 and down from 98.3 in February, the fourth straight monthly decline. 

The Hill cited economists' warning that the US government's overreliance on tariffs could lead to a substantial increase in the cost of goods for American consumers.

History has repeatedly proved that the beggar-thy-neighbor protectionist policies do little to fix the US's underlying problems and will ultimately backfire.

Unilateral measures and aggressive tactics may yield short-term gains for certain groups but, in the long run, they will provoke collective resistance from the rest of the world, which will come at the expense of the US's long-term interests. 

As The New York Times noted, the Europeans have realized that America, the nation they thought was their friend, is actually a "rogue superpower." 

The Trump administration should abandon its tariff approach as soon as possible and re-engage with multilateral institutions like the WTO, where disputes can be resolved through constructive and equitable dialogues. 

Only through genuine reciprocity can the US deal with the challenges it faces.