Millions at risk of losing jobs due to global trade wars
Global economic growth and employment rates are under threat as the world’s economic super powers impose tit-for-tat trade sanctions, according to the World Trade Organization (WTO).
WTO chief Roberto Azevedo said the escalating trade wars are “real risks” to the global economy, with as many as millions of jobs on the line.
The possibility of a tariff war was sparked after US President Donald Trump ordered tariffs on steel and aluminium imports from Canada, the EU and China.
According to WTO economists, “a complete breakdown in international trade cooperation would see a sharp rise in tariffs, knocking up to 17 per cent off global trade growth, and 1.9 per cent off overall global economic growth”.
“These effects would cause significant disruptions for workers, firms, and communities as they adjust to this new reality,” said Azevedo, calling upon world leaders to work towards political solutions at next month’s G20 summit in Argentina.