Prohibitive penalties on the poorest countries threaten to destabilize these fragile economies and deprive tens of millions of poor people of their livelihoods. Trump’s tariffs are not only unjustified, but also immoral. And this is just the tip of the iceberg.

The U.S.’ expanded tariffs under the second Trump administration are reshaping global supply chains by imposing steep, targeted duties and pressuring Asian economies to invest in American production. As manufacturing shifts away from China and its neighbors, countries like Mexico may benefit, while India risks being left behind.

The intent of the United States was to coerce China into making concessions. But this didn’t work. China was only inspired to reach out to other trading partners and become more independent through home-grown technological development.

If the United States can adapt flexibly and prioritize consensus with its trading partners, it may solidify its economic dominance. Otherwise, persistent high tariffs risk deepening global trade fragmentation and will challenge America’s long-term influence.

The most recent trade talks between the United States and China in Geneva and London provided little more than temporary relief in the conflict between the world’s two largest economies. Despite US President Donald Trump’s efforts to tout the stopgap measures as a “deal” that benefits America, China reads the scoreboard differently – and believes it is winning. From its vantage point, it has weathered the storm and emerged more confident, more self-reliant, and more convinced that its long game is paying off.

Court rulings could weaken the U.S. administration’s tough stance in trade talks and give trading partners more room to maneuver. But policy uncertainty means that high-stakes trade negotiations could go either way.

America’s reindustrialization process relies heavily on China’s industrial system support. In an increasingly competitive global market, China’s full-fledged industrial system emerges as the most cost-effective and competitive option.

After reaching a consensus in their tariff negotiations in Geneva, China and the United States have significantly reduced their duties on each other. This has awakened countries around the world and inspired them to launch a new wave of regional integration.

Values laid out by China and the United States — equality, mutual respect and mutual benefit — will keep trade tensions under control through practical results and stabilize the important trade relationship.

The deal will spell the end of WTO’s system of setting tariffs by consensus, which has been in operation since the inception of the world body in 1995. It will usher in a new era in which Washington alone will set tariff rates.