Former adviser to the US Treasury Secretary: Imposing additional tariffs on China will only be "self-defeating" |. ratna|only
Beijing, May 23: Steven Ratner, former adviser to the U.S. Treasury Secretary, recently published a commentary in the New York Times, saying that the U.S. government’s current stubborn use of protectionist measures such as tariff increases in international trade will only push the economy forward. High domestic prices, limiting consumer choice, and jeopardizing U.S. and global economic growth.
Ratner served as an adviser to the U.S. Treasury Secretary in the Obama administration. He stated in the article that the main purpose of the United States imposing tariffs on Chinese electric vehicles and other products is to please voters rather than for economic considerations. Because the American people are dissatisfied with the economic situation, politicians need to find "scapegoats."
This is the Department of Commerce building taken in Washington, the capital of the United States, on April 25. Photo by reporter Liu Jie
Ratner said tariffs would raise prices and lead to more unemployment, not less. The article cited a study by the US Goldman Sachs Group and pointed out that from 2018 to 2020, the price of US tariff target goods increased by about 4%, while the price of non-tariff target goods fell by 1%. These price increases are almost entirely paid for by American companies and consumers. In addition, analysis by the American Tax Foundation shows that Trump’s tariff policies have resulted in the loss of 166,000 jobs in the United States.
The article reviews cases of trade protectionism in U.S. history. Ratner found that protectionist measures such as tariff increases that have been promoted in history as protecting the interests of workers and farmers often trigger a wave of global protectionism, exacerbating economic depression and severely denting global trade. On the contrary, the sharp reduction in tariffs brought about by free trade often brings cheaper and better quality goods to consumers in the United States and other countries and regions, helping to promote strong economic growth.
"Every introductory economics student will learn the 200-year-old theory of comparative advantage. By producing the most efficient products of its own country and then trading with other countries, each country can become better." Ratner said that history has proved that , the US government should eliminate rather than increase trade barriers, and should allow the World Trade Organization to play its role rather than hinder its normal operation.
