EU’s Tusk warns ‘trade wars will lead to recession’

“Trade wars will lead to recession, while trade deals will boost the economy,” Tusk said. (File photo: AP)

EU Council President Donald Tusk warned Saturday that US President Donald Trump’s escalating trade skirmishes with China and Europe could force economies around the world into recession.

“Trade wars will lead to recession, while trade deals will boost the economy,” Tusk said as leaders of the Group of Seven (G7) countries descended on the French resort town of Biarritz for a three-day summit.

The summit of G7 nations will be “a difficult test of unity and solidarity” after a year during which leaders of the rich nations have found it hard to find common language, Tusk said.

Tusk also said that the EU would retaliate against the United States if it imposed tariffs on French wine, which President Donald Trump is threatening to do.

“I will protect French wine with genuine determination,” Tusk said. “If the US imposes tariffs, the European Union will respond in kind.”

“The last thing we need is a confrontation with our best ally, the United States,” he added. “This is not our initiative, this trade and tariff struggle, but we have to be ready and we are ready.”

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Last Update: Wednesday, 20 May 2020 KSA 10:00 - GMT 07:00
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