The myth that tariffs primarily burden foreign producers falls apart under scrutiny. In reality, U.S. consumers will ultimately foot the bill through higher prices.
by Xin Ping
In an era when global interdependence defines prosperity, the United States’ recent embrace of “reciprocal tariffs” represents a dangerous step backward.
Under the guise of levelling the playing field and countering “unfair trade practices,” these policies have erected more barriers that will only raise costs for American families, disrupt supply chains and threaten the stability of the entire international trading system.
As economists and trade experts warn, this tit-for-tat protectionist strategy is a textbook example of “shooting oneself in the foot,” inflicting far greater harm on U.S. consumers and businesses than on its intended targets.
HEAVIER BURDEN ON HOUSEHOLDS
The myth that tariffs primarily burden foreign producers falls apart under scrutiny. In reality, U.S. consumers will ultimately foot the bill through higher prices.
The Peterson Institute for International Economics estimated that the 2025 U.S. tariff plan could cost the average American household 2,500 U.S. dollars per year, due to costlier imports, including everyday essentials like electronics, clothing and food. For instance, the 25 percent tariff on imported automobiles and parts is projected to increase the average price of a new car by 10-12 percent, or 3,000-5,000 dollars.
Small businesses and manufacturers will also suffer. A 2025 survey by the National Retail Federation found that 74 percent of U.S. retailers have already raised prices, or plan to do so, due to tariffs, with many already struggling to absorb the rising costs of imported raw materials, like steel and aluminum. The U.S. agricultural industry is also bracing for huge losses after China, the largest buyer of U.S. farm goods, announced retaliatory tariffs on U.S. imports.
ILLUSION OF “RECIPROCAL” FAIRNESS
Proponents of “reciprocal tariffs” argue that the U.S. administration is leveraging the tool to address unequal trade barriers. This logic ignores fundamental differences in global trade structures, as tariff disparities are not the primary driver of the U.S. trade deficit. They reflect structural factors like consumer demand, currency valuations and global supply chains, not just tariff rates.
Complex problems like trade imbalances require comprehensive solutions. Simplistic and blunt measures like weaponising tariffs only further complicate the situation. When the United States imposed tariffs on Chinese goods earlier this year, China retaliated by targeting U.S. soybeans, corn and liquefied natural gas, costing farmers 1.2 billion dollars in lost revenue within months.
The flawed premise of “reciprocity” also ignores the WTO’s rules-based system, which provides mechanisms for resolving disputes. By circumventing these legitimate frameworks, the United States is undermining multilateralism and inviting retaliation from countries around the world.
The long-term consequences of tariffs are dire, even for the United States itself. The IMF warns that global GDP could shrink by 0.8 percent by the end of 2025, with the U.S. economy bearing a disproportionate share of the losses. High tariffs disrupt supply chains, forcing businesses to pay more for imports or relocate production, a scenario that erodes U.S. competitiveness.
Tariffs on steel and aluminum have backfired. While aimed to protect domestic producers, these tariffs have instead driven up costs for downstream industries like construction and manufacturing. A 2025 report by the U.S. Chamber of Commerce found that 75,000 jobs in metal-using industries are at risk due to higher input prices.
THREAT TO GLOBAL STABILITY
America’s tariff wars are especially destabilising, as the global economy is still at a time of heightened fragility. The WTO predicted that global trade growth would slow to three percent in 2025, down from 3.3 percent in 2024, due to rising protectionism.
This slowdown, disproportionately harms developing nations, which rely on exports to finance development and poverty reduction. African economies are losing ground. Countries like Nigeria and Kenya, which export textiles and agricultural products to the United States, may face reduced market access as tariffs divert trade to higher-cost suppliers.
Climate action will also suffer. Tariffs on clean energy technologies, such as solar panels and electric vehicles, are hindering the transition to renewable energy and threatening global climate goals.
Even high-profile figures in the United States recognise the folly: former Secretary of the Treasury, Janet Yellen, warned that, tariffs “undermine our ability to combat inflation” by increasing consumer prices and reducing economic efficiency.
Tariffs are a hidden tax on consumers. The United States should embrace this truth, abandon the self-defeating logic of “reciprocal tariffs” and rejoin the global community in fostering a fair and rules-based trading system, one that benefits all nations, not just a privileged few.
Editor’s note: Xin Ping is a commentator on international affairs, writing regularly for Xinhua News Agency, Global Times, China Daily, CGTN, etc. He can be reached at xinping604@gmail.com.
The views expressed in this article are those of the author and do not necessarily reflect the positions of Xinhua News Agency.– NNN-XINHUA
