The costs of a trade war

Trump says he wants a fair deal for the US
Trump says he wants a fair deal for the US

The Trump administration’s introduction of sweeping import tariffs on steel and aluminium raises the real possibility of a global trade war. The effects would be felt everywhere, but especially in the world's poorest countries, and everything from the current global recovery to the Sustainable Development Goals could now be in jeopardy, MUKHISA KITUYI* writes

GENEVA: According to an old African proverb, “When elephants fight, it is the grass that suffers.” The same is true for full-blown trade wars: when major economies clash, developing countries will be amongst the hardest hit.

 On June 1, the US administration imposed import tariffs of 25% on steel and 10% on aluminium. The levies will affect not just China, but also Canada, Mexico, and the countries of the European Union. As Cecilia Malmström, the EU Commissioner for Trade, observed at a recent event held by the United Nations Conference on Trade and Development (UNCTAD), “We are not in a trade war, but we could be.” It is a situation that should concern everyone.

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