A number of countries have been dragged into trade issues which
have, in large part, been initiated by US Donald Trump . Last week,
China said it was ready to retaliate with tariffs on around $60 billion
of US goods, just days after the US administration Revised that Trump
had spoken with US Trade Representative Robert Lighthizer and asked him
to consider increasing the proposed levies on $200 billion of Chinese
goods up to 25 percent, from 10 percent. The European Union , Canada and
Mexico have also been dragged into various trade disputes With the US
Further tariffs could have an implication for a number of
industries, particularly those with complex supply chains, according to
the Microsoft MSFT founder.
The rhetoric that OK you know we’ll use trade tariffs and we’ll
force somebody to do something, that can escalate, and so we could end
up with a lot of tariffs and all the plans people have made about
assuming their global supply Chains will work and that they’re able to
do exports and imports. That alone will be quite a burden on economic
growth and therefore job creation, Gates said.
His comments come after a number of major organizations also
warned of the impact of a full-blown trade war on the world economy. The
International Monetary Fund (IMF) said in July that the continued
threats from the US to its trading partners regarding tariffs could
Lower global growth by as much as 0.5 percent by 2020 or about $430
billion in lost gross domestic product (GDP).
The World Trade Organization (WTO) released a report in July
showing an increase in so-called "trade-restrictive" measures between
October 2017 and May 2018 between the Group of 20 (G-20) countries. WTO
Director-General Roberto Azevedo called These a "real concern" in a
statement at the time.