The destructive impact of US President Trump's reciprocal tariff policy is constantly expanding in waves of unpredictable changes. Imposing tariffs on goods may not necessarily bring low-profit manufacturing back to the US quickly, but cause significant losses to the US service industry.
Firstly, economic uncertainty will compress service demand. The reciprocal tariffs directly affect the first pillar of US service exports, which is the productive service industry. The reciprocal tariffs may lead to a slowdown in global economic growth, which will reduce global demand for all goods and services, including US services. Secondly, the damage to the manufacturing industry will affect the service industry. Logistics transportation is a necessary carrier for commodity trade. Once commodity trade is interrupted or obstructed, the logistics and transportation industry will face enormous pressure of rising costs and reduced business volume. Thirdly, retaliatory measures will restrict service exports. Countries hit by US tariffs usually take countermeasures against the United States. In terms of service trade, major trading partners of the United States, such as China, the European Union, Canada, and so on, have trade deficits with the US, and there are many types of retaliatory measures against the US service industry, with ample room for retaliation.
