Global trade war could be in the offing - Rabobank

The US has proposed tariffs on steel and aluminium on national security not economic grounds, making WTO complaints toothless, points out Michael Every, Senior Asia-Pacific Strategist at Rabobank.

Key Quotes

“The EU has threatened to respond, the US to counter-respond, and a global trade war could be in the offing.”

“Yet even larger threats to the global economic architecture loom as the US shifts towards national-security concerns and away from its traditional trade-policy approach.”

“The US could yet back down; or a Cold War with China --the real target-- could see far more significant disruption to global trade ahead.”