Trade deals and reform of WTO are better than trade wars -- EU's Tusk
BIARRITZ -- Trade deals and the reform of WTO are better than trade wars. Trade wars will lead to recession, while trade deals will boost economy, said Donald Tusk, president of the European Council, on Saturday. He called for putting a stop to trade wars.
"Trade wars among G7 members will lead to eroding the already weakened trust among us," he said during a press conference prior to the G7 summit.
US President Donald Trump tweeted Friday that the US will raise existing duties on 250 billion dollar of Chinese products from 25 percent to 30 percent beginning on Oct 1, and another 300 billion dollar worth of Chinese imports will see tariff rise from 10 percent to 15 percent on Sept 1.
If Trump uses tariffs for political reasons it would be risky to the whole world, including the European Union, Tusk told reporters.
China is firmly opposed to the US announcement that it will further raise the tariffs on about $550 billion of Chinese imports, said a spokesperson of the Ministry of Commerce Saturday.
"Such unilateral and bullying acts of trade protectionism and extreme pressure run counter to the consensus of the heads of state of China and the United States, and run counter to the principles of mutual respect, equality and mutual benefit," the spokesperson said.
"China strongly urges the United States not to misjudge the situation, or underestimate the determination of the Chinese people. It must immediately stop its erroneous practices, or bear all the consequences," the spokesperson said.
Besides China, the US is currently at loggerheads with many countries, including G7 alliance from trade to security. Threatening Germany with car tariffs, Trump vowed to tax French wines if Paris levies digital tax on big US technology companies; Casting Canada as a trade villain who "robs US blindly", he also sniffed at the European integration by encouraging Brexit with a "great trade deal" with London; Withdrawal from the Paris climate accord and the Intermediate-Range Nuclear Forces Treaty one after another, he even showed his willingness to pull out some American forces in Germany unless Berlin increases defense spending to the 2-percent GDP threshold.
