US President Donald Trump’s reciprocal tariffs have shaken the Global South and developing economies across the world.

Described as a “surgical strike” and “targeted killing” of China, the imposition of 54 percent duties on Chinese products has had far-reaching effects.

Southeast Asian countries, their industries, communities and economies—particularly China (54%), Vietnam (45–46%) and Pakistan (29%)—have been severely impacted.

Global leaders have denounced the move as “unjustified,” “unilateral,” and “anti-development,” warning of its threat to the international trading system.

Additionally, the policy carries profound global socio-economic, geopolitical and geostrategic consequences.

Interestingly, the White House’s justification declaring Trump’s move as an attempt to increase the country’s competitive edge, protect sovereignty and strengthen its national and economic security has many serious policy flaws.

Moreover, insisting America’s persistent annual trade deficits as the root cause of the outsourcing of its manufacturing base, the White House innocently labelling tariffs as a Trump Card to boost domestic manufacturing capacity and reduce the country’ dependency on foreign adversaries.

Contrary to the White House “self-claimed” justification and “whimsical” financial assessments trade deficits have been a tenacious feature of the US economy, averaging approximately 3.1 percent of the country’s GDP annually since 2008 however, this trade imbalance is a result of the country’s structural economic factors, not foreign........

© Pakistan Observer