China-US Trade Tensions: International community says US violates WTO rules, disturbs global trade order

World
Europe

03:09

The international community has banded together to say the US is violating WTO rules, undermining the security of the global industrial and value chain, and disturbing the global trade order and economic recovery. Natalie Pang has more.

US enterprises are increasingly getting concerned over Trump's tariffs and trade policies. This is according to the minutes of the US Federal Reserve's policy meeting in June. The central bank warned this could undermine strong business confidence and investments.

Economists also say a trade war will increase the cost of US manufacturing and threaten job creation, eventually transferring higher costs to US consumers.

On a popular US morning show, a panel of experts had this to say about the US metal tariffs.

And just on Friday, German Finance Minister Olaf Scholz said such trade policies from the US will harm both others and itself.

OLAF SCHOLZ GERMAN FINANCE MINISTER "The danger that one hurts himself is higher than hurting others. The likelihood is that everyone gets hurt and that I believe we should avoid and do everything we can."

Scholars and business professionals also say, protectionism and unilateralism by the US has increased the uncertainty of the world economy, and damaged WTO rules --- causing more countries to retaliate.

MARTIN WOLF CHIEF ECONOMICS COMMENTATOR, FINANCIAL TIMES "My feel is what the America is doing, is illegal under the WTO. As far as I can see, these actions are all illegal. The rest of the world will have to decide what to do about the system."

JEAN SIMARD PRESIDENT, ALUMINUM ASSOCIATION OF CANADA "I don't think the rest of the world will let the US dictate the future of the world trade system."

Currently, China, along with European Union, India, Canada, Mexico, Norway and Russia, have informed the World Trade Organization about Washington's fresh tariffs. Altogether, these countries and groups mean to safeguard global free trade and the multilateral system.

Russia is also introducing extra duties on some American goods as countermeasures. The tariffs, ranging from 25% to 40%, will be imposed on road-building equipment as well as oil and gas products.

Bank of England governor Mark Carney warns the US economy could be tipped into recession, based on the UK central bank's calculations. Its GDP volume could be cut by nearly 5 percent in a trade war scenario.

Elsewhere in Germany, a newspaper commentary said if countries could unite and counter Washington's tariff policies, then resistance and protectionism from the Trump administration could be gradually reduced.