Mexican economist: US tariff increase means retreat of the economic model that has dominated the world for 40 years.
Mauricio Cruz, an economist from Mexico, told the Spanish-language channel of Russia's Sputnik News that the US decision to impose tariffs on foreign goods worldwide should be seen as "a step backward for the economic model that has dominated the world for 40 years." He said, "The era of globalization as we know it has come to an end."
The expert pointed out that the concept of viewing global trade as the most advantageous way to achieve economic development and national prosperity was born in the 1980s and reached its peak over the following 20 years. However, the President's statement on imposing tariffs has put an end to this concept.
He stated that this decision marks a phase of great uncertainty for all economies, and also signifies a realignment of the global landscape; obviously, many economies will adopt countermeasures, start seeking new sales areas, explore new markets, and form new alliances. The process we are experiencing is very interesting.
Talking about Mexico, which was not included in the list of countries announced by the US for tariff increases, Cruz noted that this gives Mexico the opportunity to strengthen its domestic market, which is significant under the circumstances of uncertainty related to activities associated with Trump returning to the White House.
The expert emphasized, "Mexico should start taking action because the world will change, at least in the field of trade, and our country must pay attention to the domestic market and find alternatives for a large number of imported goods."
On April 2 local time, the White House issued a statement saying that US President Trump had declared a national emergency on that day to enhance America's competitive advantage, protect American sovereignty, and strengthen national and economic security.
Trump will impose a "benchmark tariff" of 10% on all countries, which will take effect at 00:01 am Eastern Time on April 5. Additionally, Trump will impose personalized higher "reciprocal tariffs" on countries with the largest US trade deficits, while all other countries will continue to comply with the existing 10% tariff benchmark. The statement also mentioned that Trump has "modification authority" to adjust tariffs up or down depending on the situation.
Original article: https://www.toutiao.com/article/1828364943258819/
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