Interview: Countries Should Unite to Fight Trump’s Tariffs

Targets of U.S. “reciprocal tariffs” should work together to lower levies under a trade framework such as the CPTPP, says Mark Kruger, a 30-year veteran of Canada’s central bank

Mark Kruger. Photo: File photo

U.S. President Donald Trump’s “reciprocal tariffs” have undermined the international trade system and risk pushing the U.S. economy into recession as early as this year, a veteran Canadian central bank official said.

Trump’s claims — the rationale for the policy is to reduce the U.S. trade deficit, revitalize the country’s manufacturing industry, correct unfair trade practices and increase fiscal revenue — are “internally inconsistent,” Mark Kruger, who worked at the Bank of Canada for 30 years, told Caixin in a Wednesday interview.

Rather than negotiate bilaterally with the U.S. on their own in the hope of getting a better deal for themselves, countries should work together under a plurilateral framework such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, he said, referring to the CPTPP trade pact involving 12 nations, including several in Asia such as Vietnam and Japan, as well as Canada and the U.K.