U.S. ‘shooting self in foot’ with protectionist steps, Brazilian expert believes

Beijing. April 5. Silkroadnews - Tariffs imposed on metal imports and other protectionist measures introduced by U.S. President Donald Trump may have unpleasant consequences for the US itself, says Brazilian economist Cesar Bergo, Federal Economic Council, Xinhua writes.
Last month, Trump introduced a 10% and 25% tariffs on imports of steel and aluminum, respectively, and a tariff on up to $60 billion on imports of Chinese goods.
Later, he exempted a few countries from onerous duties, including Mexico, Canada and Brazil, but many observers are concerned that this measure would disrupt the order in international trade and, consequently, global economic growth.
“If the U.S. maintains this conservatism regarding imports, it is going to reduce trade volume and the whole world ends up losing,” the agency quoted economist saying.
On the one hand, the protectionism seems to be the measure Trump uses to fulfill his campaign promises to protect the U.S. workers, “but what’s going to happen is the measures are going to add to the cost of products in the U.S. market,” Bergo said.
According to him, the tariffs introduced will lead to an increase in the value of goods, for example, household appliances, along the whole production chain. As a result, the long-term U.S. trade relations with key partners will also suffer, the economist predicts.
Trump’s protectionism seems to be specifically directed at China, a country that has been actively developing in recent years, which steel and technology sectors are flourishing, Bergo said.
“China produces 830 million tons of steel and ends up being one of the countries most affected by this U.S. policy,” he said.
In contrast, the United States could not fully meet its domestic demand and has to import metal.
“I think the U.S. and China will have to sit down and talk. China may suffer a negative economic impact on the one hand, but on the other it has huge negotiating potential since China is the main creditor of the U.S.,” the economist said.