The risks of a global trade war are rising. In the coming weeks, the Trump Administration is almost certain to implement aggressive tariffs or quotas on steel and aluminum imports under the United States’ Section 232 national security clause. If China, in particular, retaliates to Section 232 actions in an aggressive manner, the situation could unravel quickly, with very detrimental effects on global financial markets. In this analysis, Keybridge examines the possibility of a full-fledged trade war, and the impacts it would have on the world economy.
Related Documents: Key Insight – A Global Trade War in 2018? – February 2018