The invoking of national security to unravel trade agreements could scramble the international trading system in China’s favor.The New York Times reports that President Trump’s recent decision to impose tariffs on Canada, Mexico, and China has sparked concerns about the potential consequences for the global trading system. This move, which was made in the name of national security, has been criticized by lawmakers, economists, and business groups who fear it could lead to inflation, harm American industries, and strengthen China’s position in the global market. Despite these concerns, Mr. Trump defended the tariffs on social media, acknowledging that there may be negative effects. The tariffs, which will go into effect on Tuesday, will apply to all goods imported from Canada and Mexico at a rate of 25%, with the exception of Canadian energy products, which will face a 10% tariff. Chinese goods will also face a 10% tariff. In response, Canada, Mexico, and China have all announced plans to retaliate with their own tariffs. Mr. Trump’s senior trade adviser, Peter Navarro, stated that it is unlikely the tariffs will be stopped at the last minute.
Source:Read More