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World Trade Organization Chief: Trump’s Tariffs Put World At Risk Of Trade War, ‘Deep Recession’

ECONOMY

World Trade Organization Chief: Trump’s Tariffs Put World At Risk Of Trade War, ‘Deep Recession’





The World Trade Organization (WTO) Director-General Roberto Azevêdo on Monday warned that the world is at risk of a trade war and a “deep recession” if President Trump’s massive new tariffs on steel and aluminum imports go into effect, saying “the potential for escalation is real.”

“In light of recent announcements on trade policy measures, it is clear that we now see a much higher and real risk of triggering an escalation of trade barriers across the globe. We cannot ignore this risk and I urge all parties to consider and reflect on this situation very carefully,” Azevêdo said.

“Once we start down this path, it will be very difficult to reverse direction. An eye for an eye will leave us all blind and the world in deep recession. We must make every effort to avoid the fall of the first dominoes. There is still time,” he continued.

“The WTO is clearly concerned at the announcement of US plans for tariffs on steel and aluminum,” the director-general said. “The potential for escalation is real, as we have seen from the initial responses of others.”



“A trade war is in no-one’s interests,” he added.

During an interview on Sunday, White House trade adviser Peter Navarro criticized the WTO.

“A lot of the problem has been the World Trade Organization, which is over 160 countries, and a lot of them simply don’t like us and so we don’t get good results there,” Navarro said.

“But we are fair and reciprocal traders and the World Trade Organization I think needs to change with the times,” he said.

The Hill added:

Trump’s announcement of tariffs on aluminum and steel imports have sparked negative reactions from a number of major U.S. allies.

European Commission President Jean-Claude Juncker said last week the European Union would propose new tariffs on big-name American products, such as Harley-Davidson, Levi’s denim and bourbon.

Canadian Foreign Minister Chrystia Freeland said Ottawa would take “responsive measures” against the U.S. if Washington imposed tariffs on Canadian steel and aluminum exports to the U.S.




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