The US billionaire Bill Gates described the tension surrounding global trade as “terrible”. According to him, it will have a strong negative impact on the growth of the world economy and job demand. In the words of Microsoft’s founder, the world economy is moving at a good pace at the moment, but it is likely to be hit by the effects of the duties imposed by the largest economies.
“Definitely this trade conflict looks terrible, especially since people looking for work outside their own country can quit at one point. There will be a negative impact on the world economy, which may be far more serious if the trade war continues with the imposition of a customs duties”, said Bill Gates.
A number of countries have been involved in the trade war, largely initiated by the administration of the US President Donald Trump. Last week, China said it was ready to respond to the US by imposing customs duties on US goods for about 60 billion USD. The threat comes just a day after Washington revealed that Trump had spoken to US Trade Representative Robert Lighthizer to raise the projected customs duties on imported Chinese goods worth 200 billion USD from 10% to 25%.
The European Union (EU), Canada and Mexico have also been involved in the conflict with the United States.
The additional imposition of duties may have serious consequences for a number of industrial spheres, especially those with complex supply networks, according to the Microsoft’s founder.
“The rhetoric, that we will use trade duties and force someone to do something, can lead to escalation, to get into a situation with a lot of custom tariffs and to hinder import and export as a whole, which in itself will be a serious burden for economic growth and therefore for the creation of new jobs”, said Bill Gates.
His comments come amid warnings from a number of large organizations about the negative impact of the growing trade war on the global economy. The International Monetary Fund (IMF) said in June that continued threats by the US to their trading partners could significantly reduce global economic growth by 0.5% by 2020, which will represent a loss of 430 billion USD of the global GDP.
The World Trade Organization (WTO), for its part, publishes a report showing the increase in the “Trade-restricting” measures between October 2017 and May 2018 among the G-20 countries. The WTO Director-General Roberto Azevedo expressed his concern about this fact.
“This continuing escalation represents a serious threat to global economic growth and the recovery of all countries. This is very well seen by us in some predictive indicators”, said Roberto Azevedo.