No winners in US trade war

White House using tariffs as unfair weapon against smaller nations, according to China’s Ambassador to Thailand, writes Mongkol Bangprapa

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The United States’ imposition of reciprocal tariffs has drawn global attention, Han Zhiqiang, Ambassador of the People’s Republic of China to Thailand, shared his views on the matter.

IS A TRADE SURPLUS A CRIME? International trade is based on each country’s resources and comparative advantages, with voluntary exchange and mutual benefit as its core.

American companies choose Thailand as a base to produce hard drives and then sell them back to the United States because Thailand has a cost advantage.

If one argues that Thailand has a trade surplus with the United States and deems that Thailand is engaging in unfair trade and should be subject to tariffs, then what if the United States trade surplus in services, which amounted to an enormous US$ 295.2 billion in 2024? Does that make the United States unfair to its global trading partner? Should the world retaliate against the United States?

The US’s reciprocal tariffs are inconsistent with the general principles of economics. The division of labour and free trade among nations are the foundations of global economic development.

The United States has in fact been the greatest beneficiary of the global trading system. American consumers enjoy fantastic, cost-effective products from around the world, while the US retains advantages in high-value sectors such as finance and technology. Ngozi Okonjo-Iweala, director-general of the World Trade Organization (WTO), once wrote that “the United States is the biggest winner in global trade.”

TARIFFS AS COERCION The US uses tariffs as a weapon to pressure its trade partners to the extreme and seek unilateralism.