A South African Economist has said U.S actions of trade protectionism targeted at China will hurt itself and the global economy.
Mike Haworth also said the move is against the irreversible trend of globalization.
“A trade tariff that’s increased basically disconnects the market. And so the country that imposes the tariffs, all of the costs go up relatively because all the domestic manufacturers can then raise their prices because there’s an additional demand that can raise the prices to match that tariff”, Haworth said.
He also points out that the trade protectionism by the U.S. will lead to price hike and excess of goods, which will increase the burden of Americans.
“I don’t think globalization is going to stop. It is a permanent set in the world economy, and it will continue. You can start the trade war, and those actions can get started, but often you can’t control the consequences”, he added.
The Sasfin Wealth investment strategist also thinks that the U.S is going against the trend of free trade and globalization, which will affect the stability of international market.