Tit-for-tat tariff battle could spark downturn in global economy – BIS

Warning comes as Donald Trump steps up hostility with some key trading allies

An escalation of protectionist measures could spark a fresh downturn just as the global economy is picking itself up after the last one, the international body that represents the world’s central banks has warned.

The Bank for International Settlement (BIS) said there were already signs that “the ratcheting up of rhetoric” was weighing on investment. It comes as Donald Trump steps up hostility with some of the US’s key trading partners and allies, raising fears of a full-blown trade war.

Related: Trump threatens car tariffs after EU sets up £2.5bn of levies on US

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Read the original at Economics | The Guardian.