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21 August
Wednesday

World

US unleash a new trade war

The IMF warns that the next conflict will be more dangerous than the dispute between America and China

Photo: Reuters

/NOVOSTIVL/ A new trade war sparked by U.S. automotive tariffs has the potential to do much more damage to global economic growth than the U.S.-China trade conflict has done, International Monetary Fund chief economist Gita Gopinath said on Thursday. Such a conflict would affect exports from many more countries and impose retaliatory duties on U.S. goods from numerous trading partners. This article appeared in the Reuters.

"We are concerned about what auto tariffs would do to the global economy at a time when we are more in the recovery phase," Gopinath said on the sidelines of the IMF and World Bank annual meetings in Washington.

Should trade conflicts spill over into the automotive sector, it would also disrupt larger parts of global manufacturing supply chains, she said.

U.S. President Donald Trump has threatened to levy tariffs of some 25 percent on imported vehicles and auto parts on national security grounds, invoking a 1962 trade law aimed at safeguarding the Cold War-era military industrial base.

Trump has openly admitted that he is using the threat of auto tariffs to draw trading partners including Japan and the European Union into trade negotiations. But he also has recently threatened to impose car duties on Mexico unless it improves security at the U.S. border.

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