JAKARTA - Donald Trump's new tariffs are shaking global trade again. Economists warn that the policy could squeeze supply chains, raise business costs, and make consumers pay more.
China Daily, quoted Saturday, July 25, reported that the US government announced new tariffs on Thursday. The policy takes effect from Friday for imported goods from more than 60 trading partners, including China.
The tariffs imposed range from 10 percent to 12.5 percent. This new policy replaces the 10 percent provisional tariff imposed in February based on Article 122 of the Trade Law of 1974. The provisional tariff period expires the night before the new policy is implemented.
Chinese Foreign Ministry spokesman Lin Jian said Beijing rejected all forms of unilateral tariff policies. The statement was made at a press conference in Beijing on Friday.
"China's position on the China-US economic and trade issues is consistent and clear. The tariff war and trade war do not serve the interests of both parties," Lin said.
John Quelch, executive vice president and professor of social sciences at Duke Kunshan University, called the latest US move unfortunate.
According to Quelch, tariff policies like this follow an old pattern that adds to the cost of trade and again disrupts supply chains. The affected countries, he said, are likely to have to lobby for exemptions for certain sectors.
"Businesses thrive in a stable and predictable trade rules climate," Quelch said.
He said policy uncertainty in trade could make companies delay investment. Companies can also seek suppliers from more countries with higher costs, then pass on the additional costs to consumers.
The burden could come in the form of more expensive imported goods.
The ultimate impact, according to Quelch, is slower economic growth and declining competitiveness.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said constructive trade relations among the world's major economies remained important for global prosperity.
According to Zhou, each government still has its own national priorities. However, continued dialogue and rule-based cooperation are considered more effective in facing common challenges.
He said a stable international trading system not only benefits exporters and investors, but also consumers and workers in various countries.
According to a Politico report, China is likely to face additional tariffs of 12.5 percent for a number of products. Similar tariffs are also said to apply to 43 other countries, including Japan, South Korea, and Australia.
China Daily said many companies in the US had previously warned that additional tariffs could disrupt supply chains and harm American consumers themselves.
Tom Fullerton, an economist and professor at the University of Texas at El Paso, said low-income consumers in the US will bear the brunt of the new tariffs.
"That's because they buy more goods than services, and a lot of those goods are made in China or contain components made in China," Fullerton said.
According to Fullerton, US manufacturers also have to pay more for imported components. US retailers are also facing higher wholesale prices for imported consumer goods.
Meanwhile, on Friday, China included 14 EU entities on an export control list. The list includes defense-related companies Lafert SpA and Rheinmetall AG.
The move is China's retaliatory action against the EU's 21st round of sanctions package against Russia. The sanctions package restricts 14 companies based in mainland China and the Hong Kong Special Administrative Region.
China's Ministry of Commerce said exporters were prohibited from sending dual-use goods to entities on the list.
Dual-use goods are goods that can be used for civilian needs, but can also be used for military or security purposes.
The ministry also said that organizations and individuals abroad were prohibited from transferring or supplying dual-use goods from China to entities on the export control list.
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