Ngozi Okonjo-Iweala warns of global risks in trade disputes amid 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 proposed tariff plans.
The 55th World Economic Forum is currently underway in Davos. This year's event coincides with the inauguration of Donald Trump as the 47th President of the United States. The politician announced plans to implement tariffs.
The initial targets are to be Mexico and Canada, followed by China. The European Union is on the list as well, but it's worth noting that there is still no official confirmation of these plans in written documents. In other words, there are no specifics yet.
The statements of the U.S. President did not go unnoticed by the forum participants in Davos. The head of the WTO warned about the potential implementation of Donald Trump's plans, specifically regarding the trade war they might 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 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 tariffs were set to take effect on 1 February 2023, Greenwich Mean Time.
