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Trump Has a Message for the World: My Trade Wars Aren’t Over Yet

Posted April 10, 2019

Under Economic Issues, International Trade Issues

(Shawn Donnan – Bloomberg)

President Donald Trump is sending a clear message to the economic policy makers gathering in Washington for the IMF and World Bank’s spring meetings: My trade wars aren’t finished yet and a weakening global economy will just have to deal with it.

With his latest threat to impose tariffs on $11 billion in imports from the European Union – from helicopters to Roquefort cheese – the U.S. president offered a vivid reminder that, even as he moves toward a deal with China to end their tariff wars, he has other relationships he’s eager to rewrite. That’s not encouraging for global growth, with the International Monetary Fund and others pointing to the uncertainty over Trump’s assault on the global trading system as a damper on business investment and sentiment.

Should they materialize, the new tariffs will be in retaliation for what the U.S. has long claimed are illegal subsidies to Airbus SE and cap a 14-year fight between Boeing Co. and its European rival at the World Trade Organization. Importantly, the U.S. has said it will wait for the WTO, which has already deemed the subsidies illegal, to rule this summer on the exact amount of retaliation allowed. Click here to read more.