TYC Finance: Abudurahram 

Recently, the comprehensive trade war unilaterally initiated by the United States is gradually eroding the development process of the world economy and affecting the lives of everyone. According to the latest report by the United Nations Conference on Trade and Development, due to the escalation of trade tensions and the persistence of uncertainties, it is expected that the global economic growth will slow down to 2.3% in 2025, and the world economy will enter a recessionary trajectory! At the same time, from the perspective of Islamic finance and economic philosophy, the U.S. unilateral behavior of imposing super-high tariffs is in violation of market freedom and global interests, and is inconsistent with Islamic financial and economic ethics, which will have a certain negative impact on the global economy.

"Surah Al-Baqarah 275 of the Quran" juxtaposes legitimate trade with usury, emphasizing the status of trade as a legitimate economic activity; "Surah An-Nisa 29 of the Quran" emphasizes "mutually consensual transactions," stipulating that tariffs must not distort market freedom and that tax rates should not force trading parties to accept unreasonable terms; The Prophet (peace be upon him) prohibited the creation of unfair barriers in the marketplace, that is, monopolies and excessive taxation through political intervention; The Prophet (peace be upon him) admonished policymakers that tariff rates should be commensurate with the costs of public services (such as port construction expenses), opposed excessive tariffs, and deemed tariffs exceeding actual needs as unjust taxes; The Prophet (peace be upon him), in order to protect vulnerable groups, advocated for an essential goods exemption mechanism, that is, the implementation of low/zero tariffs on basic commodities such as wheat and medicines; Contemporary Islamic scholar Yusuf al-Qaradawi's early proposed tariff assessment framework points out that setting moderate and fair tariffs to protect national industries is permissible, but super-high tariffs imposed through political coercion are in violation of Islamic doctrine. Based on the Islamic financial system, where the total debt of enterprises or financial institutions must not exceed 30% and 33% of total assets or equity respectively, it is determined that a 30% temporary protective tariff may be acceptable, but a punitive coercive tariff that continuously exceeds 50% is in contravention of the principles of fairness, reasonableness, and appropriateness in Islamic jurisprudence!

Under the above-mentioned principles of Islamic jurisprudence**, it is recognized that setting moderate tariffs to protect domestic industries from dumping is acceptable. However, if it evolves into a trade barrier and unreasonable super-high tariffs are imposed, it deviates from the spirit of the teachings. The current U.S. tariffs, which far exceed 33%, represent an extreme use of economic leverage. They interfere with market freedom, force vulnerable groups to accept unequal treaties, and create market obstacles through excessive taxation, which is in direct opposition to Islamic economic philosophy! Islamic economic philosophy advocates public interest and promotes the development of the world economy. Violating Islamic economic philosophy erodes the global economic process and hinders human prosperity!

As the main financial institution of the Islamic world, the Islamic Development Bank, a multilateral financial institution with 57 member countries, integrates Islamic financial principles with contemporary development economics in its stance. In its 2030 strategy, it emphasizes the need to promote globalization in pursuit of common human interests, to establish cross-border Islamic trade financing certificates based on Islamic law, to set up duty-free warehousing zones, to develop blockchain tariff platforms, to eliminate the interest component in traditional trade financing, and to set flexible tax rates to ensure a free and fair market ecosystem! As Samir, the chief economist of the Islamic Development Bank, said: "One end of our scale is the market regulations in the Constitution of Medina, the other end is the tariff table of the African Continental Free Trade Area, and the middle flows with the eternal wisdom of Islamic law!"

In conclusion, Islamic economic philosophy emphasizes public interest and market freedom, and opposes the creation of market barriers through excessive taxation. The U.S. super-high tariff behavior not only violates this philosophical spirit but also has a negative impact on the global economy.