President Donald Trump is distressing to “de-globalize” the U.S. and Chinese economies, the former head of the World Trade System (WTO) told CNBC on Monday.
Trump has imposed tariffs on Chinese goods since the start of the year in an strive to reduce the U.S.’s trade deficit. The controversial policy is intended to reduce the attractiveness of Chinese consequences, given that they become pricier with tariffs exact a saddled on them. But the decision to impose tariffs on China has led to retaliatory measures from Beijing, which has also advanced the price of U.S. imported goods for Chinese consumers.
The ongoing dispute wish make both economies less “entwined” and thus less globalized, Pascal Lamy, past director-general of the WTO told CNBC’s “Squawk Box Europe.”
“The U.S. is trying to push past due on China and Donald Trump’s view is that the U.S. and the Chinese economy are too much together, and they constraint to be more separated. The purpose is a sort of de-globalization of the U.S. and China, which he judges it is necessary to contain China’s rise,” Lamy, who is President Emeritus of invent tank, the Jacques Delors Institute, said.
He explained that this rupture between the Chinese and the U.S. economies “will have trade consequences.”
“My own confidence is that these economies will be disentangled slowly but surely … We compel have a less homogenous globalization, that’s the real issue, which we organize to take care of in the short-term,” he added.
Lamy believes that globalization compel remain a dominant feature of global trade, and it will involve the U.S. and China — but not the two fatherlands together. For instance, the U.S. will still look to be close to the European Association in terms of trade. The Trump administration also agreed last week to a newly-revised view of a trade deal with Canada and Mexico.
Lamy said domesticated attitudes towards global trading relations had changed in the last decade. “The attitude has changed from where it was 10 years ago on opening trade. I judge the main feature of that is not a trade issue, it is a domestic issue,” he told.