Trade & investment

ICC urges negotiation over retaliation on trade tariffs 

  • 6 February 2025

In a series of high-profile interviews with major media outlets, ICC Secretary General John W. H. Denton AO, has highlighted widespread concerns and uncertainties within the global business community as a result of threatened and imposed US tariff hikes. 

In interviews with CNBC, BBC as well as leading newspapers and newswires, Mr Denton warned tariffs could lead to significant disruptions in trade, resulting in severe economic consequences for businesses and the communities they serve.  

Describing the potential tariff hikes as confusing, Mr Denton said there was little clarity on the US administration’s ultimate policy objectives, adding to the prevailing concerns among businesses worldwide. 

Mr Denton underscored the vital role of the rules-based system in maintaining global trade stability, calling on governments to keep cool heads and avoid a destructive cycle of retaliation. 

 

“An unfettered global tariff escalation is in no one’s interest,” he said. “Widespread retaliation risks a dislocation of trade that could precipitate a global recession, and we could see a contraction in trade of historic proportions – with severe economic implications for businesses and families around the world.”

Mr Denton stressed the importance of concerted negotiation as the default response to tariffs reiterating that the overall strategy remained unclear and could be designed to “escalate to de-escalate”.  

Mr Denton also highlighted the potential impact of tariffs on the US economy warning prolonged tariffs could lead to significant price spikes for household items and food, and have a negative impact on domestic industrial output due to import dependencies. 

Urging countries to prioritise negotiation over retaliation, Mr Denton highlighted ICC’s role helping companies navigate import or export restrictions as the world’s business organisation representing over 45 million companies worldwide. “Avoiding a destructive cycle of retaliation is in all our interests,” he said. 

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