Levies seen disrupting global economic order

China's ambassador to the United Nations on Wednesday said that U.S. tariffs were "advancing hegemonic interests of the U.S. at the cost of the legitimate interests of all countries".

The tariff policy "severely infringes upon the legitimate rights and interests of all countries, severely violates the WTO rules, severely undermines the rules-based multilateral trading system, and severely disrupts the global economic order", said Fu Cong, China's permanent representative to the UN.

He spoke at the UN Security Council Arria-formula, or informal, meeting on the impact of unilateralism and bullying practices on international relations on Wednesday. The meeting was hosted by China and attended by representatives from more than 80 countries.

"The U.S. is playing a zero-sum game, which is essentially about subverting the existing international economic and trade order by means of tariffs, putting the U.S. interests above the common good of the international community, and advancing hegemonic interests of the U.S. at the cost of the legitimate interests of all countries," he said.

"The world, once again, finds itself at a crucial crossroads. Should we firmly advocate multilateralism, or should we allow unilateralism to spread unchecked? Should we promote democracy in international relations, or should we condone power politics? Should we abide by international law and the basic norms governing international relations, or should we return to the law of the jungle, where the strong prey on the weak?" said the ambassador.

"Economic globalization is the only way to human progress and an irresistible trend of the times. Erecting high walls of tariffs is turning back the wheel of history. The world will never and should never return to a state of mutual isolation and fragmentation," he said.

"All countries should jointly uphold the WTO-centered, rules-based multilateral trading system, build an open world economy, and make economic globalization more open, inclusive, beneficial to all, and balanced," he added.

Fairness, justice needed

Fu said the world needs fairness and justice, "not putting one's own country first", and "development is the universal right of all countries, not the exclusive privilege of a few".

"For the Global South, and in particular, the least developed countries, the imposition of high tariffs is no different from depriving them of the right to development, creating deeper-seated development gaps," the ambassador said.

Members of the Global South and European countries on Wednesday also reiterated their concerns over tariffs and their potential to destabilize the international economic system.

Samuel Moncada, permanent representative of Venezuela to the UN, speaking on behalf of the Group of Friends in Defense of the Charter of the United Nations, expressed their deep concern over unilateral trade measures, including the use of tariffs, which may "constitute a new form of economic and political coercion".

"We all agree that trade wars do not have winners, and they can cause a world recession, further worsening the challenges we face. We underscore the fact that this situation will not lead to sustainable results and that commercial tensions may have a negative impact of great scope — such as exacerbating the global economic uncertainty — and may disproportionately impact developing countries," said Moncada.

"My country firmly believes that negotiated solutions foster trust, reduce friction and strengthen the rules-based multilateral trading system. We therefore call for a recommitment to the principles of transparency, accountability and reciprocity in global trade relations," said Ioannis Stamatekos, deputy permanent representative of Greece to the UN.

"The expanded use of tariffs has significant negative effects on the global economy, raises prices for consumers and disrupts international supply chains. Rather, by lowering barriers and fostering open markets, innovation can flourish, poverty can be reduced, and consumers will have better choices at lower prices," said Troels Grabow Bay, political coordinator at the Permanent Mission of Denmark to the UN.

"The tariff measures are utterly unjustified by the economic claims of the U.S. government. The tariffs target a trade deficit that is not the fault of China or its partners," said Jeffrey Sachs, professor of economics and director of the Center for Sustainable Development at Columbia University. "It is the result of America's large budget deficits and low private savings. The United States is blaming other countries for its own economic policies."