Analyst says US tariffs may lead to trade wars, rising costs | ABS-CBN
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Analyst says US tariffs may lead to trade wars, rising costs
Analyst says US tariffs may lead to trade wars, rising costs
Reuters
Published Feb 02, 2025 10:13 PM PHT
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U.S. tariffs may lead to trade wars and rising costs across the globe, an analyst said on Sunday (February 2).
U.S. tariffs may lead to trade wars and rising costs across the globe, an analyst said on Sunday (February 2).
"These actions taken by the U.S. government are going to increase the overall economic uncertainty in the world," Qiu Buhui, Professor of Business and Finance at the University of Sydney Business School, told Reuters in an interview.
"These actions taken by the U.S. government are going to increase the overall economic uncertainty in the world," Qiu Buhui, Professor of Business and Finance at the University of Sydney Business School, told Reuters in an interview.
U.S. President Donald Trump signed an order on Saturday (February 1) imposing hefty new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, potentially disrupting more than $2.1 trillion worth of annual trade.
U.S. President Donald Trump signed an order on Saturday (February 1) imposing hefty new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, potentially disrupting more than $2.1 trillion worth of annual trade.
The trade tensions have already escalated with Canada and Mexico retaliating to fight back with their own counter tariffs, sparking a potentially damaging trade war between the key economic partners.
The trade tensions have already escalated with Canada and Mexico retaliating to fight back with their own counter tariffs, sparking a potentially damaging trade war between the key economic partners.
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Canada's Prime Minister Justin Trudeau said on Saturday that Canada would impose 25% tariffs on C$155 billion ($106.5 billion) of U.S. goods in response to U.S. tariffs.
Canada's Prime Minister Justin Trudeau said on Saturday that Canada would impose 25% tariffs on C$155 billion ($106.5 billion) of U.S. goods in response to U.S. tariffs.
Meanwhile, Mexican President Claudia Sheinbaum said she ordered her economy minister to implement tariff and non-tariff measures to defend Mexico's interests.
Meanwhile, Mexican President Claudia Sheinbaum said she ordered her economy minister to implement tariff and non-tariff measures to defend Mexico's interests.
Qiu however, pointed out that the U.S. tariffs on Chinese imports may have an unexpected silver lining for China's domestic manufacturers, as the increased costs of imported goods could help to offset the country's current deflationary pressures, potentially giving Chinese producers a competitive edge and allowing them to reap some benefits from the trade tensions.
Qiu however, pointed out that the U.S. tariffs on Chinese imports may have an unexpected silver lining for China's domestic manufacturers, as the increased costs of imported goods could help to offset the country's current deflationary pressures, potentially giving Chinese producers a competitive edge and allowing them to reap some benefits from the trade tensions.
The trade tensions and retaliatory tariffs have marked a significant shift in the global economic landscape, Qiu said. He stressed that the world economy, once hailed for its interconnectedness and global supply chains, has now become increasingly fragmented.
The trade tensions and retaliatory tariffs have marked a significant shift in the global economic landscape, Qiu said. He stressed that the world economy, once hailed for its interconnectedness and global supply chains, has now become increasingly fragmented.
Qiu fears that the situation will deteriorate if a trade war escalates. As countries continue to exchange blows of tariffs and counter-tariffs, the notion of a unified global economy will be undermined, instead fostering an environment of economic isolationism and protectionism, where nations prioritize their own interests over collective cooperation and mutual benefit.
Qiu fears that the situation will deteriorate if a trade war escalates. As countries continue to exchange blows of tariffs and counter-tariffs, the notion of a unified global economy will be undermined, instead fostering an environment of economic isolationism and protectionism, where nations prioritize their own interests over collective cooperation and mutual benefit.
(Production: Gabriel Goh, Shung Sin Tan, Daniel Lim)
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