Trade war warnings as WTO cautions against Trump's tariffs
Trade wars will have catastrophic consequences for global economic growth, warned Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO). This is in response to U.S. President Donald Trump's tariff plans.
The 55th World Economic Forum is currently underway in Davos. This year's event coincided with the inauguration of Donald Trump as the 47th President of the United States. As reported, the politician announced his plans to introduce tariffs.
The initial targets are Mexico and Canada, followed by China. The European Union is in line, but it should be noted that there is still a lack of official confirmation of these plans. In other words, no specifics have been provided.
The comments from the U.S. President did not escape the attention of forum participants in Davos. The head of the WTO warned against the implementation of Donald Trump's plans, particularly the trade war they could trigger.
- If we have tit-for-tat retaliation, whether it's 25% tariff (or) 60% and we go to where we were in the 1930s we're going to see double-digit global GDP losses. That's catastrophic. Everyone will pay- said Ngozi Okonjo-Iweala, Director-General of the World Trade Organization.
Donald Trump's tariff plan
During the first two days in office, the U.S. President announced the introduction of tariffs of 25% on Mexico and Canada, and 10% on China. They were to take effect on February 1, 2023, Eastern Time.
