BoE Carney Warns Trump that More Tariffs Would Hurt US

July 5, 2018 Share Print 0

The governor of the Bank of England has warned Donald Trump that further escalation of US trade disputes around the world would damage the American economy most, with potential to lower US growth by around 5%.

Mark Carney said the tariffs announced so far by the president on goods from China, the EU and several other countries, combined with their retaliatory measures, had already slowed the global economy.

Carney believes any additional measures would have a significantly more damaging impact. Delivering a speech in Newcastle on Thursday, he said: “At the moment, protectionism is largely just talk (and tweets). But what if rhetoric becomes reality?”

Revealing forecasts made by Threadneedle Street, the governor said the American economy would suffer a 2.5% drop in GDP as a result of falling trade volumes alone over three years, should the White House increase US import tariffs by about 10 percentage points on all of its trading partners.

via The Guardian

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.