Opinion | US tariffs are taxing for the whole world, not just China

The United States’ unilateral imposition of 25 per cent tariffs on Chinese products worth US$34 billion damages the global economy in the short term, and strategically threatens the economic well-being of numerous other countries.

International Monetary Fund managing director Christine Lagarde therefore correctly expressed her duty towards the international economic community with her recent statements. “Let us redouble our efforts to reduce trade barriers and resolve disagreements without using exceptional measures,” she said.

It is, therefore, crucial to understand that unilateral tariff imposition is not merely against the interests of any one country but against the interests of all states. The most immediate threat is of disruption to a global economy which is enjoying its most sustained synchronised recovery since the international financial crisis.

“The world is currently experiencing a strong upswing that holds the promise of higher incomes and living standards. Delivering on this promise is critical,” Lagarde said. “But we can see darker clouds looming ... the momentum expected for 2018 and 2019 will eventually slow.”

To avoid those darker clouds, she had a clear message – that governments need to steer clear of protectionism in all its forms.