Robert Reich: Nobody wins from a trade war

Recently, Robert Reich, an American political economist, pointed out that all goods entering the United States are subject to a tariff of 10 percent or more. This will increase the tax burden on every consumer, decrease their actual purchasing power, and force low-income consumers to spend a larger proportion of their income on tariff payments.

He also pointed out that high tariffs not only affect exporters to the United States but also impact domestic U.S. companies. Many American businesses conduct assembly operations overseas, and after the pandemic, it took them over a year and a half to restore their supply chains to normal. However, now the tariff policy has pushed these supply chains back into uncertainty – and uncertainty harms economic growth. Reich clearly stated that "there are no winners in a trade war." If high tariffs are implemented, the situation will mirror 1930, and no one will benefit.