ICC Secretary General warns of serious ramifications from tariff retaliation
Speaking in a live interview on CNN International television to anchor Kim Brunhuber, ICC Secretary General John W.H. Denton AO provided perspectives on the potential consequences of current global trade tensions.
Speaking on behalf of over 45 million companies globally, Mr Denton stressed the need for a collaborative approach, describing tariff retaliation as a “lose-lose” game and calling for negotiation and de-escalation over retaliation.
Mr Denton highlighted that the US accounts for only 13% of global trade, making it unlikely to single-handedly trigger a global trade war. He urged economies to focus on establishing a revitalised multilateral trading system rather than engaging in retaliatory measures, which could lead to recession and economic self-harm.
“Let’s not follow a pathway to mutually assured destruction here, because we’ve all seen what a global trade war looks like, and it’s devastating for people and communities, and devastating for economies,” he said.
Comparing the current situation to the oil shock of the 1970’s Mr Denton pointed to market and real economy signs of slowdown due to the announced tariffs.
He warned that further escalation could lead to “serious ramifications”, including sovereign debt downgrades for emerging economies and damage to US supply chains.
Mr Denton urged governments to use the shock created by the US announcement last week to recalibrate and revitalise the multilateral trading system that the US had helped create.
“The reality is the system is not perfect,” he said. “But what we’re saying is use this opportunity of the shock that the US announcement has created to recalibrate…and revitalise that system.”
Watch the interview in full
