Washington strikes a blow to global trade

The US government introduces tariffs on steel and aluminum imports from key allies starting from June 1 (earlier there were benefits for some allies). “This is an act of full-scale trade war, which will have a very negative impact not only on the US economy, but also on the world economy,” RISS expert Ilya Kravchenko pointed out.

The EU and Canada has announced that it would proportionally respond to such US policy. “European Commission President Jean-Claude Juncker has already said that the EU will introduce retaliatory measures such as duties on clothes, agricultural production, and cars. Trump has repeatedly stated that the American automobile industry is the best in the world and offered to impose restrictions on the European automobile industry,” the analyst said.

“Despite the fact that these duties will have disastrous consequences for American economy, let’s not forget who elected Trump. He will describe any of his failures as a victory of America. He promised that he would defend the interests of US manufacturers, and he does so in a tactless manner. And his main electorate will only increase. Another question is whether there will be new voters, especially on the eve of the upcoming Congress elections,” he said.

According to RISS expert, the US may even withdraw from the WTO. “We already know how America complies with their international treaties. International Security Advisor John Bolton has recently stated that international obligations didn’t need to be observed. Probably, if Washington's partners will put pressure on the USA within the WTO, the White House may decide to withdraw from this organization, which would be catastrophic for global trade,” the analyst said.

WTO USA sanctions