Trade tensions loom: WTO chief warns of Trump's global impact
Trade wars will have catastrophic consequences for global economic growth, warned Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO). This is a response to U.S. President Donald Trump's tariff plans.
The 55th World Economic Forum is underway in Davos. This year's event coincided with the inauguration of Donald Trump as the 45th President of the United States. The politician announced the implementation of his plans regarding the introduction of tariffs.
The first targets are to be Mexico and Canada, followed by China. The European Union is waiting in line, but it's important to note that there is still a lack of confirmation of these plans in official documents. In other words, there are no specifics yet.
The words of the U.S. President did not go unnoticed by forum participants in Davos. The head of the WTO warned against implementing Donald Trump's plans, specifically against the trade war that might ensue.
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 his first two days in office, the U.S. President announced the introduction of tariffs of 25% on Mexico and Canada and 10% on China. These were intended to take effect on February 1, 2023.
