The U.S. imposition of high tariffs on other countries results in a lose-lose outcome. Nowadays, most countries and regions around the world are deeply interconnected in trade, and the U.S. approach will only inflict damage on the global economy. For many decades, the United States had long been a steadfast defender of global free trade. Ironically, however, the U.S. is now wielding a tariff «big stick» at the world, breaking down the free trade system it once helped build.
Although the U.S. government has consistently emphasized so-called «reciprocal tariffs,» its policies do not truly reflect reciprocity. The U.S. claims that the purpose of these tariffs is to «balance» the trade deficit with a specific country. However, trade deficits are not always harmful. Take the steel trade, for example: when the U.S. imports steel from other countries, the cost is largely spent on the steel products themselves due to the relatively lower labor costs in the countries of origin. By processing this steel into higher value-added products, such as cars or other high-value goods, the U.S. can fully reap the benefits of global free trade.