US trade move bound to hit global growth

After threatening to ignite a trade war against China for months, the Donald Trump administration imposed additional tariffs on $34 billion worth of Chinese goods on July 6. To protect its core national interests, China was forced to take retaliatory action on the same day and levy tariffs on US imports based on the "equal scale and strength" principle.

Not satisfied with the July 6 tariffs, the US administration on July 10 proposed a 10 percent tariff on $200 billion of Chinese goods, which will be decided on Aug 31 following public hearings from Aug 20 to 23.

While the Trump administration is using his "America First" policy as an excuse to impose tariffs on Chinese goods, such protectionist tools were declared "outmoded" in the 1990s, because they were not only against the spirit and trend of globalization but also World Trade Organization rules. The US' beggar-thy-neighbor trade policy has invited condemnation from the international community and risks the trade conflicts spiraling out of hand. And increasing protectionism could fan the passions of nationalism and populism giving rise to more inward-looking policies across economies.