Fears of the first full-scale tariff war since the 1930s have been raised by the head of the World Trade Organisation, in a direct warning to Donald Trump that his proposed levies on steel and aluminium will trigger a domino effect that will lead to global recession.
In a sign of growing international alarm at the possible consequences of Trump’s protectionist measures, Roberto Azevedo, the WTO’s director general, said “in the light of recent announcements on trade policy measures, it is clear we now see a much higher and real risk of triggering an escalation of trade barriers around the world”.
The US president responded to Azevedo’s warning – and a separate call from the Paul Ryan, the Republican speaker of the House of Representatives – by saying he would not back down on last week’s threat to put a 25% tariff on steel imports and a 10% tariff on aluminium imports.
Trump rejected the idea that his measures – announced as a way of defending America’s national security – would lead to a trade war, even though his announcement has already prompted the threat of retaliation from the European Union, Canada, Brazil and China.
Source : theguardian
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