WASHINGTON (XINHUA) – United States (US) tariffs tactics against China could badly backfire as the international community, including Washington itself, is fighting COVID-19, a US media report has said.
As some hardliners in the White House have bolstered hawkish voices and claimed tariffs or other economic tools against China, Chief Economist at accounting and consulting firm RSM US LLP Joe Brusuelas said, “This is pure folly; it’s exactly what the US economy doesn’t need,” US TV network CNN reported last Friday.
Against the backdrop of soaring unemployment and economic slowdown caused by the pandemic to the US, the imposition of tariffs on other countries, like what is endorsed by the Smoot-Hawley Act during the Great Depression, might merely deepen the ongoing downturn.
“A Smoot-Hawley sequel is an entirely bad idea,” Brusuelas said, explaining that US businesses and households would be first affected by the tariffs added to imports from other countries.
Meanwhile, as the Wall Street has been betting on a swift recovery from the recession, a renewed trade dispute will cast a shadow on market confidence, said Chief Information Officer for Americas at Deutsche Bank Wealth Management Deepak Puri in an e-mail to CNN.