THE world is on the brink of a financial meltdown if Donald Trump’s import tariffs descend into a full-blown trade war – with the European Union wiping £255billion from its GDP, the World Trade Organisation has warned.
In an apocalyptic notice, WTO director general Roberto Azevedo said “warning lights are flashing” and the world must axt immediately.
The European Union faces seeing 1.7 percent wiped from its GDP growth, he said.
That equals £255bn ($335bn) of the EU’s £15trillion ($19.7trn) GDP.
The colossal figure roughly equates to the entire economic output of EU countries the size of Austria, Ireland, and Denmark and far exceeds the GDP of Portugal, Hungary, and Romania.
Mr Azevedo said: “Clearly, we cannot let this happen.”
Speaking at a Berlin industry event against the backdrop of growing trade tensions between China and the United States, Mr Azevedo added: “The warning lights are flashing.
“A continued escalation of tensions would pose an increased threat to stability, to jobs and to the kind of growth that we are seeing today.”
A full-blown global trade war with a breakdown in international trade cooperation would reduce global trade growth by around 70 percent and GDP growth by 1.9 percent, Mr Azevedo added.