The United States’ persistent reliance on tariffs as a blunt instrument of economic and political coercion continues to destabilise global trade and undermine its own interests. The latest round of punitive tariffs imposed by Donald Trump on Chinese imports, an extension of his previous administration’s aggressive stance, reflects a misguided strategy that harms American consumers, weakens the global economy, and disrupts the delicate balance of international trade.
Worse still, Washington has resorted to an absurd justification for its economic hostilities, blaming China for the US’s fentanyl crisis, an argument that is as disingenuous as it is desperate.
The reality is that tariffs do not operate in a vacuum; they have direct consequences on domestic economies. Studies by the Peterson Institute for International Economics have shown that approximately 90 per cent of the cost of tariffs levied on Chinese goods is borne by American consumers and businesses.
The increased cost of intermediate products for manufacturers, estimated at 13 per cent, ultimately translates into higher prices for everyday goods. The notion that such tariffs serve to “Make America Great Again” is nothing more than an elaborate deception aimed at placating a domestic audience while ignoring the fundamental principles of economics.
Even in their primary objective, reducing China’s trade surplus with the US, these tariffs have failed spectacularly. Between 2018 and 2024, China’s surplus against the US increased from $323.33 billion to $361 billion. Furthermore, the dream of reshoring industries to American soil remains just a dream. The forces of financial capital and a strong dollar policy have rendered the reshoring effort ineffective, leaving American businesses to bear the brunt of increased costs without any substantive benefits.
In its desperation to justify yet another round of tariffs, Washington has latched onto the issue of fentanyl, alleging that China is responsible for the US opioid crisis. This claim disregards the extensive steps China has taken to curb the trafficking of fentanyl-related substances. China was the first country in the world to implement whole-category controls on fentanyl in 2019, a move that was widely recognised by international organisations.
The 2023 report of the United Nations Office on Drugs and Crime highlighted that China-US antidrug cooperation had led to a 47 per cent increase in the interception of illegal fentanyl precursor chemicals. Despite these collaborative efforts, Washington continues to deflect responsibility for its own regulatory failures by blaming Beijing.
The United States’ approach to tariffs is not only counterproductive but also fosters a climate of economic brinkmanship. By strong-arming its neighbours, such as Mexico and Canada, into adopting similar tariffs against China, Washington seeks to erect an economic fortress under the guise of protecting its interests. Treasury Secretary Scott Bessent’s remarks urging Canada to follow Mexico’s lead in imposing matching tariffs expose a broader strategy of coercion rather than fair competition. This adversarial stance does little to address the real challenges facing global trade and instead deepens divisions that could be resolved through cooperation and dialogue.
A truly sustainable approach to global trade requires nations to engage in constructive dialogue rather than resort to protectionist measures that only escalate tensions. The United States must abandon the illusion that economic warfare serves its long-term interests. China has made it clear that it will not be intimidated or blackmailed into submission. If Washington continues down this path, it should brace for proportionate countermeasures that will not only neutralise its tariff aggression but also further entrench the US in a trade war from which there are no winners.
China’s response to US economic aggression has not merely been defensive; it has proactively cultivated alliances across the Global South, shielding developing nations from the worst effects of US economic hegemony. The Belt and Road Initiative (BRI), for instance, has allowed African, Latin American, and Asian economies to reduce their reliance on Western financial institutions, offering alternative sources of funding and development.
Countries such as Ethiopia and Pakistan have benefited from massive infrastructure investments, allowing them to industrialise without being beholden to the stringent conditions imposed by institutions like the International Monetary Fund (IMF) and the World Bank. Meanwhile, China’s increased trade with BRICS nations, including Brazil and South Africa, has expanded economic opportunities outside of the traditional Western-dominated trade frameworks.
Moreover, China’s engagement with Latin America has significantly bolstered the region’s economic independence. In Argentina, for example, China has extended currency swap agreements that stabilise the peso and reduce dependency on the US dollar, providing much-needed economic resilience.
In Venezuela, despite US-imposed sanctions, China has continued to trade in oil and infrastructure, ensuring that Washington’s punitive economic policies do not completely cripple the country. By deepening economic ties and promoting a multipolar trade system, China has positioned itself as a counterbalance to US economic coercion, fostering a more inclusive and resilient global economy.
The international community must resist the temptation to be drawn into this spiral of protectionism and economic hostility. Only through mutual respect, cooperation, and a commitment to fair trade practices can a truly equitable and resilient global economy be built. The US, by persisting in its reckless tariff policies, risks isolating itself and undermining the very foundations of the global economic order it once championed.
