Increase in tariffs and import duties to US$588 billion could threaten global economy, World Trade Organisation warns
- United States has announced duty on US$250 billion of imports from China during trade war before temporary truce agreed between Xi Jinping and Donald Trump
- Head of Geneva-based WTO Roberto Azevedo urges members to ‘use all means at their disposal to de-escalate the situation’
Restrictive trade measures including tariffs and import duties rose sharply over the past year and could threaten global economic growth and jobs, according to the World Trade Organisation.
World Trade Organisation (WTO) members applied 137 new trade-restrictive measures during the year that ended in October, up from 108, according to the Geneva-based organisation.
The coverage of these trade-restrictive measures amounts to US$588 billion, more than seven times larger than a year ago.
“This proliferation of trade restrictive measures and the uncertainty created by such actions could place economic recovery in jeopardy,” said WTO director general Roberto Azevedo.
“Further escalation would carry potentially large risks for global trade, with knock-on effects for economic growth, jobs and consumer prices around the world.”
The report comes as the US and China seek to ease trade tensions that have roiled global markets.