SYDNEY, April 13 (Xinhua) -- The boomerang, a weapon that spins through the air and returns, and can hurt its wielder if used carelessly, serves as a fitting metaphor for the unintended consequences of U.S. tariff policy.

The U.S. recent misuse of tariffs has not only inflicted direct economic losses on other countries but also undermined the global economic order and development by creating heightened uncertainty, causing widespread harm to the world. In the end, much like the traditional weapon used by Australian Aboriginal people for combat and hunting, it also hurt the United States itself.

Following the introduction of the latest round of U.S. tariffs, global markets reacted sharply. Taking Australia as an example, after Washington announced a 10-percent baseline tariff on its trading partners, the Australian stock market plunged by more than 6 percent, and the Australian dollar dived to a five-year low.

An executive of a multinational consulting group operating in Australia noted that market volatility usually drives a boom in the consulting business as clients seek expert advice. However, this time, "clients didn't even know what questions to ask," the executive said, because they were facing an unprecedented level of "extreme uncertainty."

As a developed country and major trading power, as well as a key global exporter of food, minerals and energy, Australia has already begun to feel the acute pain caused by the U.S. tariffs. Australia has suffered both direct and indirect shocks. Due to Australia's close trade ties with Asia, the damage inflicted on Asian economies by U.S. tariffs has brought significant indirect pressure on Australia. The resulting uncertainty over the economic and trade outlook has directly depressed the Australian dollar.

The depreciation of the Australian dollar has, in turn, triggered imported inflation, exacerbating the country's already difficult livelihood issues. In recent years, rising living costs driven by inflation have been a persistent challenge for Australia.

Models released by the Australian Treasury, Warwick McKibbin at the Australian National University, and Brendan Rynne, chief economist at KPMG Australia, all indicate that U.S. tariff hikes have caused the Australian dollar to weaken, leading to higher short-term inflation. Their projections suggest that inflation could exceed baseline forecasts by 0.2, 0.1, and 0.8 percent, respectively, adding even greater pressure on ordinary Australian households.

The knock-on effects of U.S. protectionism continue to dominate. The treasury noted, "In the short run, tariffs are likely to disrupt global supply chains, and could reduce confidence, leading to a reduction in spending, particularly investment."

The damage caused by U.S. tariff policies to Australia's economic growth will be inevitable. McKibbin noted that the direct and indirect effects of the U.S. tariffs would reduce Australia's economic size by 0.4 percent. Rynne believes that if Washington maintains its current stance, the long-term impact of the tariffs on Australia's gross domestic product (GDP) would be around 0.7 percent.

While damaging the economies of its trading partners, the United States has not been spared itself. By erecting tariff barriers, the superpower has isolated itself, leaving the greatest uncertainty to its own future.

Although the impact of tariffs on ordinary American citizens may be somewhat delayed, many American billionaires have already taken the brunt and suffered massive personal wealth losses in the financial markets since the inauguration of the new U.S. administration. The U.S. stock market has lost trillions of dollars in value, and this decline could continue. The inflation and recession risks triggered by tariffs have formed the worst possible combination.

"People are underestimating how damaging Trump's tariffs will be on U.S. production and also the world," said Teresa Fort, a trade expert at the Tuck School of Business at Dartmouth, adding that for businesses, "a lot of the damage will be lasting because of the amount of uncertainty injected into firms' decision-making."

The aggressive tariff policy has sparked concerns about a recession in the U.S. economy. JPMorgan economists expected the United States to slip into a recession in 2025, and 92 percent of economists surveyed by Bloomberg News said the tariffs raise the likelihood of a downturn.

Over the past half-century, U.S. trickle-down economics and laissez-faire policies have led to severe imbalances in domestic wealth and income, a decline in living standards in some regions, and massive financial distortions both at home and abroad. Instead of addressing its own problems or adjusting domestic policies, the United States has sought to shift the crisis onto its trading partners -- the essence of how its tariff policies are spreading uncertainty.

In economic activities, trust and confidence are essential. The current U.S. tariff policies have severely undermined Washington's credibility in the international economic arena. Today, its trading partners are rethinking how to engage with an economy that has become a major source of uncertainty. Enditem

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