by Luo Jun
BEIJING, Feb. 14 (Xinhua) -- The recent proposal of a controversial border tax on imports by U.S. House Republicans will not only set back global trade rules and hurt the interests of Washington's trading partners, but also cost U.S. consumers and its global influence dearly.
Though there are some good intentions behind the bill, including raising the competitiveness of American products and fostering favorable conditions for the domestic manufacturing industry, it could never meet the goal without paying a much higher price.
The proposed border tax plan immediately shocked the European Union (EU) and other U.S. allies, and may prompt the biggest dispute in the World Trade Organization, as it goes against basic economic principles and established world trade rules.
A radical increase on import tax would put a heavy burden on domestic consumers, retailers and other businesses, as well as overseas trade partners of the United States.
The unilateral disruption of a trade balance could very likely trigger counter measures from other countries, even a chain reaction across the global trade landscape, with the worst case scenario being a trade war that causes losses on all sides.
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