US President Donald Trump implemented trade protectionist policies earlier this year, with tariffs on some foreign products imported into the US set to result in retaliatory measures by other global economic powers.
Mark Carney, governor of the Bank of England (BoE), has warned Trump that escalating the international trade war, which his protectionist policies prompted, would cause the most damage to the US economy, Sky News reported on Thursday.
The head of Britain’s central bank estimated that the proposed retaliatory economic sanctions against the US could lower its economic growth rate by five percent. He also said that an economic slowdown has already occurred in the US as a result of Trump’s actions.
“At the moment, protectionism is largely just talk. But what if rhetoric becomes reality? There is a growing possibility that trade uncertainty could crystallize the longstanding risks of a snap back in long-term interest rates, increased risk aversion and a general tightening in global financial conditions,” Governor Mark Carney said during a speech in Newcastle on Thursday.
“There are some tentative signs that this more hostile and uncertain trading environment may be dampening activity.”
US tariffs on over $300 billion of Chinese products are set to come into effect in a matter of hours, and Governor Carney warned that tariffs, even without retaliatory measures, will adversely impact American businesses.
Earlier this week, as a result of tariffs already imposed by Washington, a survey found companies in the US manufacturing sector to be suffering from the “longest delivery delays on record.”
Despite this worrying development and multiple warnings by economists and diplomats, Trump has given no indication he plans to backpaddle on his trade protectionist policies.
Sourse: sputniknews.com
