US Media: US Government Tariff Policies Backfire, Hinder Global Tech Cooperation

April 2 last year, U.S. President Donald Trump signed an executive order at the White House on the so-called “reciprocal tariffs,” announcing that the United States would impose a 10% “minimum baseline tariff” on trade partners, and impose higher tariffs on certain trade partners.

A year later, the U.S. government once again announced a new round of tariff actions—imposing a 100% tariff on certain imported patent drugs and pharmaceutical ingredients, and adjusting the ad valorem tariffs being imposed on imported steel, aluminum, copper, and related derivative products.

violating the WTO’s fundamental principles

Beginning in April 2025, the U.S. government announced “reciprocal tariffs” with differentiated charges imposed on different trade partners, an action that has been explicitly pointed out by dozens of World Trade Organization (WTO) member countries as seriously violating the WTO’s most-favored-nation treatment principle.

A screenshot from a U.S. political news network report

A recent article by U.S. political news outlet Politico says that the U.S. government’s tariff offensive against the world ignores the key principles that have supported global trade for decades. The policy undermines the free-trade principles that have dominated global trade for nearly 80 years and splits the global market that multinational companies have long yearned for.

Increasing friction among allies

The article says that the U.S. government’s tariff policy damages the trade relationship between the United States and most other major economies around the world. What’s more, the U.S. government also uses its tariff policy as a bargaining chip and a weapon to pressure other countries, covering everything from trying to “buy” Greenland to the digital policy game between the U.S. and Europe.

The article also points out that the trade war launched by the U.S. government has prompted its traditional allies to reflect on their dependence on the U.S. economy and trade relationships.

In March this year, European Commission President von der Leyen and Australian Prime Minister Albanese shook hands at a signing ceremony held at the Canberra House of Parliament. European decision-makers are building new trade relationships and gradually moving away from dependence on U.S. trade relationships. (Screenshot from a Politico report)

Shocking the U.S. innovation industry and curbing global technology cooperation

The article argues that the U.S. government’s tariff policy will hit its own innovation industries. According to data from the Congressional Research Service, in 2020, nearly three-quarters of U.S. innovation funding came from companies, and companies need overseas sales revenue to finance their innovation plans. Philip Luck, who served as the Deputy Chief Economist of the U.S. State Department during the Biden administration and is currently head of the economic program at the Center for Strategic and International Studies (CSIS) in Washington, D.C., gave an example in an interview with Politico: “If China market sales revenue decreases by $1 billion, that means $200 million in R&D funding can’t be invested.”

The article also notes that the U.S. government’s tariff policy will have far-reaching effects across the entire technology sector. Originally, cross-border cooperation enabled breakthrough technological achievements to benefit the wider public. However, in the current tariff-war environment, it remains unclear whether technological progress can bring about the same cross-border cooperation or achieve the same level of global impact.

The U.S. will find it difficult to gain other countries’ trust

In February this year, the U.S. Supreme Court ruled that the comprehensive tariffs announced by the government in April last year were unconstitutional, and the White House later confirmed the termination of some tariff measures. Analysts believe that since the Supreme Court ruling, this administration has launched new trade investigations into the European Union, the United Kingdom, Canada, and most parts of Asia, and these investigations may ultimately become the basis for future tariff surcharges.

On April 2, the White House issued an announcement. That day, President Trump signed documents under Section 232 of the 1962 Trade Expansion Act, and the United States will impose a 100% tariff on some imported patent drugs and pharmaceutical ingredients, while adjusting the ad valorem tariffs being imposed on imported steel, aluminum, copper, and related derivative products.

On April 2, the White House released an announcement about the U.S. new tariff measures on pharmaceuticals (Source: U.S. White House official website)

An article analysis by Politico says that the U.S. government’s tariff policy may bring huge and long-term costs to American businesses and consumers. Philip Luck, head of the economic program at CSIS, said that it may take decades for the impact and consequences of this administration’s tariff policy to fully become apparent. These “costs” are far more difficult to quantify than tariffs, but they will inevitably have far-reaching effects on the U.S. economic landscape.

The article also points out that after this administration tore up decades of trade agreements and abandoned a series of economic policies and trade principles, it will be extremely difficult to get partners and allies to trust the United States again.

Massive information and precise interpretation—available on the Sina Finance app