The International Chamber of Commerce is concerned about the looming trade war triggered by the US plans to put hefty tariffs on steel and aluminium.
“There will be no winners from a trade war. Open markets are – and remain – the key driver of economic growth, prosperity and job creation across the world,” it said in a statement on Thursday.
Any new tariffs would inevitably push up prices at the till and restrict consumer choice, hitting families struggling to make ends meet hardest, the ICC reminded.
Addressing the US and its trading partners, it said that “in a globalised world trade is not a zero-sum game – and policy decisions must reflect this reality”.
As US President Donald Trump last week announced plans to put 25 per cent tariff on steel and 10 per cent on aluminium, other countries, including Germany, China, North Korea, vowed counter actions about this.
The global trade body instead urged the US administration and its trading partners to seek alternative means to address the longstanding issue of excess capacity in the steel and aluminium markets.
Recent years have seen a notable decline in trade distorting measures in these sectors and further progress can only be made through enhanced multilateral dialogue, it noted in the statement.
The ICC asserted that rising trade tensions must not become an excuse for recklessness.
It urged all governments to act within the bounds of existing WTO rules and to commit to accelerated talks under existing international processes.
Though Trump believes that new metal tariffs would go in his favour, the IMF and the WTO have warned him of meeting with a proportionate measure from countries affected by this.