"History shows that unilateral tariffs often provoke retaliatory measures, disrupting supply chains and undermining economic stability," said Fabrizio Hochschild, former UN under-secretary-general.
by Xinhua writer Yin Xiaosheng
SARAJEVO, Jan. 5 (Xinhua) -- A new round of U.S. protectionist policies could harm global trade, disrupt supply chains, and ultimately burden consumers in the United States, a former senior UN official has said.
"Economists largely agree that tariffs push up prices and reduce competition, which hampers GDP growth," Fabrizio Hochschild, former UN under-secretary-general, told Xinhua in a recent interview.
In November, U.S. President-elect Donald Trump laid out plans to levy tariffs of 25 percent on imports from Mexico and Canada, and an additional 10 percent on goods coming from China.
Reflecting on Trump's first term, Hochschild said that tariffs often burden consumers with higher costs rather than boosting the economy.
"Many components of American cars are produced abroad. Imposing tariffs would raise production costs, leading to higher car prices for consumers," he said, citing the automotive industry as an example.
Hochschild expressed concerns about the risk of the global economy fragmenting into competing trade blocs. "The International Monetary Fund has made it clear that such divisions would slow global growth," he said, "A free market has been a key driver of economic prosperity over past decades."
"History shows that unilateral tariffs often provoke retaliatory measures, disrupting supply chains and undermining economic stability," Hochschild noted, emphasizing that trade disputes should be resolved through multilateral mechanisms like the World Trade Organization (WTO).
"If the WTO is sidelined, a cycle of tariffs and counter-tariffs could hurt everyone involved," he cautioned.
"The major challenge is the threat of a fragmented global economy. It increases global tensions," Hochschild said.
Amid pressing global challenges like climate change, inequality, and AI regulation, Hochschild stressed that "the world faces far greater challenges that require international cooperation, and trade conflicts add to uncertainty and distract attention from these priorities."
Looking forward, Hochschild remained hopeful that major countries like China and the United States could resolve their trade disagreements through negotiations.
"Resolving these disputes will allow nations to focus on the most urgent issues such as increasing global conflicts, climate change, and global health challenges," said Hochschild.■