Tariff policies imposed by US will backfire, warns Chinese consul general in Pakistan

The excessive and aggressive tariff policies reimposed by the U.S. administration, targeting China, the EU, Canada, Mexico, and other countries, have heightened trade tensions and disrupted the global economic order, according to Zhao Shiren, Consul General of China in Pakistan. Framed as a strategy to address alleged trade imbalances, bring back manufacturing, protect American interests, and reclaim economic dominance, these policies are inherently regressive and are expected to backfire, Zhao Shiren noted.

He further explained that historical precedents and ground realities suggest that tariffs imposed unilaterally by a major power will fail to restore American greatness. Instead, they will deepen global economic fractures, undermine world stability, harm U.S. consumers and businesses, and risk exacerbating America's relative decline.

Reflecting on lessons from the previous trade war and considering the broader implications of the new tariffs, Zhao emphasized that tariffs are not solving problems but creating more, driven by ultra-nationalistic motives and going against the principles of trade liberalization and economic globalization.

Zhao Shiren also criticized the new 20% tariffs imposed on China, which have been "justified" by unfounded claims that China is responsible for fueling the U.S. opioid crisis. Zhao dismissed these claims as unsubstantiated and argued that the U.S. administration is weaponizing the fentanyl issue to punish China, despite China's strict export controls and enhanced cooperation with U.S. authorities on fentanyl-related substances. This approach, Zhao argued, exemplifies a shifting blame game, echoing the saying, "One is getting sick while medicating the other for treatment."

Historically, narcotics have inflicted severe suffering on China, and since the founding of the People's Republic of China in 1949, China has fought tirelessly against the illegal drug trade. Zhao emphasized that China has been helping the U.S. tackle the issue of fentanyl, having implemented the strictest and most comprehensive counter-narcotics policies in the world. However, despite these efforts, Zhao stated, the U.S. administration has ignored China's cooperation and instead turned to blaming China, which he likened to "returning good with evil."

Zhao also pointed out that the tariffs imposed by the U.S. will ultimately burden American households and industries, adding more pain for U.S. taxpayers. Tariffs are not paid by foreign exporters but by domestic importers, which leads to higher costs for consumers.

Zhao highlighted that the tariffs from the previous trade war cost the average American household approximately $1,300 annually, and the new tariffs will exacerbate inflationary pressures, disproportionately affecting low- and middle-income families. Zhao believes this will eventually lead to widespread dissatisfaction among the American public.

Furthermore, Zhao Shiren criticized the U.S. tariffs for violating international law, particularly the World Trade Organization (WTO) rules, which prohibit discriminatory trade practices. By circumventing WTO dispute mechanisms, the U.S. is eroding the credibility of the international body it helped establish, Zhao argued, and pushing other countries toward alternative arrangements. He noted that the European Union has shown little appetite for U.S.-led efforts due to its own economic challenges.

Zhao concluded that U.S. tariffs represent confrontation over cooperation and are a manifestation of the "might-makes-right" philosophy. He warned that continued implementation of these tariffs will not only disrupt international trade and global economic governance but will also weaken America's ability to address its domestic issues, which require a multi-pronged approach rather than unilateral steps.

He stressed that imposing tariffs alone cannot solve America’s economic woes, pointing to China's significant progress in fields like 5G technology, quantum computing, and renewable energy, while the U.S. lags behind in areas such as infrastructure and labor training. Zhao noted that closing America’s infrastructure gap would require an investment of $2.6 trillion over the next decade—much less than the cost of the tariff war.

Zhao also cautioned that tariffs stifle U.S. innovation, as they have raised costs for U.S. startups and manufacturers, slowing down the adoption of critical technologies. The U.S. approach to tariffs, Zhao stated, is an illusion of winning a zero-sum game, where trade is viewed as a contest rather than a mutually beneficial exchange. He emphasized that China-U.S. trade has benefited both nations by lowering consumer prices, fueling technological innovation, and supporting millions of jobs.

In conclusion, Zhao warned that the legacy of tariffs would become a cautionary tale in a world where supply chains are increasingly interconnected. Protectionist policies, including tariff imposition and the weaponization of trade, will ultimately lead to a dead-end, he argued. He stressed that a nation’s economic resurgence is achieved through informed policymaking, strategic collaboration, and adaptability, rather than through short-term measures like unilateral tariffs. The 21st century, Zhao concluded, demands open policies and open mindsets, looking outward rather than inward.

Zhao Shiren also posed a series of questions to the U.S., urging it to reflect on the outcomes of its tariff and trade wars: Has the U.S. achieved its objectives? Has its trade deficit widened or narrowed? Has its manufacturing competitiveness improved? Zhao stated that China-U.S. business relations are based on reciprocal interactions, and cooperation is the key to mutual benefit and a win-win outcome. If the U.S. insists on war, whether it be a tariff war or any other type, China is prepared to fight until the end.