NEW YORK: A series of U.S. protectionist policies proposed by President-elect Donald Trump could adversely affect global trade, disrupt supply chains, and ultimately place a financial burden on consumers in the United States, according to Fabrizio Hochschild, a former senior United Nations official.
According to Namibia Press Agency, Hochschild, who previously served as the UN under-secretary-general, expressed concerns that imposing tariffs would raise prices and reduce competition, consequently hampering GDP growth. He cited the automotive industry as an example, noting that many components of American cars are produced abroad, and that tariffs would increase production costs and consumer prices.
Hochschild warned of the potential for the global economy to fragment into competitive trade blocs. He referenced the International Monetary Fund’s stance that such divisions could slow global growth, emphasizing that a free market has been a key driver of economic prosperity over recent decades.
History, he noted, shows that unilateral tariffs can provoke retaliatory measures, disrupting supply chains and undermining economic stability. Hochschild advocated for resolving trade disputes through multilateral mechanisms such as the World Trade Organization (WTO), cautioning that sidelining the WTO could lead to cycles of tariffs and counter-tariffs harmful to all parties involved.
Hochschild highlighted the broader implications of a fragmented global economy, which he said could increase global tensions. He underscored the importance of international cooperation in addressing pressing global challenges like climate change, inequality, and AI regulation, noting that trade conflicts only add to uncertainty and detract from these priorities.
Despite the challenges, Hochschild remains hopeful that major countries can resolve their trade disagreements through negotiations. He believes that resolving these disputes will enable nations to concentrate on more urgent global issues, including rising conflicts, climate change, and public health challenges.