SAHARA REPORTERS
Amid threats of imposition of tariffs on countries, especially more recently by newly sworn in President of the United States, Donald Trump, the World Trade Organization has called for caution.
This position was communicated by the World Trade Organization Director-General, Ngozi Okonjo-Iweala, who nudged nations Thursday to keep calm over threats of tariffs.
Okonjo-Iweala shared her thoughts during a panel discussion on tariffs at the World Economic Forum in Davos, Switzerland, AFP reports.
Her statements come amid threats by Trump to impose tariffs on China, the European Union, Mexico and Canada.
She warned that a tit-for-tat trade war would be “catastrophic” for the world economy.
“Please let’s not hyperventilate. I know we are here to discuss tariffs. I’ve been saying to everybody: could we chill, also. I just sense a lot of hyperventilation,” She noted.
“We are very much saying to our members at the WTO: you have other avenues. Even if a tariff is levied, please keep calm, don’t wake up and without the necessary groundwork levy your own,” she said.
“If we have tit-for-tat retaliation, whether it’s 25 percent tariffs, 60 percent, and we go to where we were in the 1930s, we are going to see double-digit global GDP losses, double-digit. That’s catastrophic.”
Trump also threatened Vladimir Putin with tariffs if the ongoing invasion of Ukraine fails to cease.
He also threatened a 10% tariff on Chinese products coming into United States, a move that could be implemented soon.
President Trump recently threatened to impose a 25% tariff on imports from Canada and Mexico.
In response, Canada has vowed to stand up for its citizens and is preparing potential retaliatory measures. The situation is tense, with both countries bracing for the economic impact of these potential tariff.
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