Broad tariff hikes risk retaliation and distrust from US trading partners, experts say.
Those partners could hit back with tariffs of a similar magnitude although China, consistent with its past approach, might retaliate in a "less-than-proportional manner," said Oxford Economics.
Taken together, this would still have a significant hit on trade and US GDP.
Higher import costs are likely to hit incomes and consumption, while retaliatory tariffs will make US industries less competitive, Oxford Economics added.
"At a time when international conflicts are manifold and international collective action problems are substantial, the United States cannot afford to alienate its partners and allies," the PIIE report said.
"In short, the proposed policies come with serious national security risks."
Source: AFP
