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Former US Treasury Secretary's Advisor: The US's imposition of tariffs on China will only "self defeating"

Xinhua News Agency, Beijing, May 23 - Steven Ratner, a former adviser to the US Secretary of the Treasury, recently commented in the New York Times that the US government's stubborn use of protectionist measures such as tariffs in international trade will only push up domestic prices, limit consumer choices, and endanger the growth of the US and the global economy.

Ratner served as an adviser to the US Treasury Secretary in the Obama administration. In his article, he said that the United States imposed tariffs on Chinese electric vehicles and other products mainly to please voters, rather than for economic reasons. As the American people are dissatisfied with the economic situation, politicians need to find "scapegoats".

Ratner said that tariffs would lead to higher prices and increase rather than decrease unemployment. Citing a study by Goldman Sachs Group, the article points out that from 2018 to 2020, the price of US tariff target goods will rise by about 4%, while the price of non-tariff target goods will fall by 1%. These price increases are almost all paid by American companies and consumers. In addition, the analysis of the American Tax Foundation shows that Trump's tariff policy has led to the loss of 166000 jobs in the United States.

This paper reviews the cases of trade protectionism in the history of the United States. Ratner found that such protectionist measures as levying tariffs, which were historically publicized to protect the interests of workers and farmers, often triggered a wave of global protectionism, exacerbated the economic depression and severely damaged global trade. On the contrary, the sharp drop in tariffs brought about by free trade often brings cheaper and better quality goods to consumers in the United States and other countries and regions, which helps to promote strong economic growth.

"Every introductory economics student will learn the theory of comparative advantage with a history of more than 200 years. By producing the most efficient products in their own countries and then trading with other countries, each country can become better." Ratner said that history has proved that the United States government should eliminate rather than increase trade barriers, and the World Trade Organization should play a role, Instead of hindering its normal operation.