Interview: Global trade should not be dominated by a single power, says economist

by Xinhua writer Yin Xiaosheng

SARAJEVO, June 7 (Xinhua) -- The United States' recent decision to raise tariffs on foreign steel and aluminum to 50 percent, which took effect Wednesday, marks a significant escalation in protectionism and economic coercion, posing serious risks to global trade stability, an economist has warned.

"This move inevitably trigger retaliatory tariffs from other countries and ultimately harm the U.S. economy most in the long run," Gavran Igor, an economic analyst from Bosnia and Herzegovina (BiH), told Xinhua, adding that unilateral actions like these erode trust and cooperation by treating global partners not as equals, but as subordinates.

Igor stressed that no single country should dictate the rules of global trade. Instead, he advocated for a more inclusive and balanced approach built on fairness, reciprocity and mutual benefit. He characterized the U.S. tariff policy as a form of "economic bullying" that violates international norms and called for a collective global response to uphold multilateralism.

"The United States is pressuring its partners to 'surrender' instead of engaging in negotiations on equal terms," Igor said. He pointed out that the European Union is already facing 25 percent tariffs on steel and automobiles, while a broader set of so-called "reciprocal tariffs" -- provisionally set at 50 percent -- remains temporarily capped at 10 percent under a 90-day suspension set to expire in July.

Although BiH is not an EU member, its economy is tightly woven into EU supply chains, making it highly vulnerable to global trade disruptions.

"The most immediate impact is on our defense sector, which is our largest exporter to the U.S. market," Igor explained. "Over 60 percent of our exports to the United States come from this industry, and these products are now subject to a 35 percent tariff -- up from 12 percent. Other sectors, including metals, are also being hit."

He cautioned that the longer-term consequences could be even more severe for Bosnian manufacturers integrated into EU-based industries, especially automotive supply chains, which are themselves being affected by the new U.S. tariffs.

He called on the international community to strengthen cooperation among reliable trade partners, who should "take the lead in shaping a fairer, rules-based global trade system."

Smaller economies like BiH would benefit from a more balanced global trade environment, Igor added, urging countries to reject economic coercion and work together toward shared prosperity. ■