Washington: A U.S. expert on Monday urged President Donald Trump's administration to exercise caution in imposing tariffs, warning that applying them to both allies and adversaries will make America "less well-off" and "less secure." Cullen Hendrix, a senior fellow at the Peterson Institute for International Economics, highlighted the risks associated with Trump's undifferentiated approach to trade policy.
According to Yonhap News Agency, Hendrix released an article underscoring the potential impact of the Trump administration's tariff strategy, which has targeted various trading partners. Concerns have been raised that these tariffs could strain the United States' alliance network amid escalating tensions with China.
Hendrix emphasized that using tariffs indiscriminately will weaken U.S. security and prosperity, which are best supported by strong alliances and consistent, rules-based trade with security partners. He pointed out that the current global context, marked by numerous active armed conflicts and an uncertain economic outlook, is not conducive to eroding trust through blanket tariffs.
The expert noted the advantages the U.S. derives from its alliances, such as enhanced defense capabilities and market access for American weapons. Despite these benefits, he remarked that the Trump administration's tariff policies have not spared allies, potentially undermining alliance cohesion.
Hendrix warned of the challenges in asking allies to maintain high defense expenditures while their economies suffer due to higher tariffs. This situation could weaken collective deterrence and allow adversaries, particularly China, to exploit divisions within alliances.
He advocated for a trade policy that promotes free trade with established security partners, suggesting that tariffs should be used sparingly and in a targeted manner to maintain alliance stability and trust.