A trade war resulting from President Donald Trump
tariffs on imports of aluminum and steel (or any other major trade action for
that matter) would turn out bad for all countries involved and especially for
international shipping, according to BIMCO, the largest of the international
shipping associations representing shipowners.
the proposed tariffs on aluminum and steel themselves are seen as having a
limited impact on most international bulk trades, BIMCO warns the tariffs could
trigger something bigger, like an all-out trade war, that would negatively
impact global shipping in a much wider way, including container shipping
trade provides prosperity and peace. It’s a fundamental principle to cherish
and safeguard. All trade-restrictive measures are in principle bad for
shipping,” commented BIMCO’s Chief Shipping Analyst Peter Sand in a blog post published
by BIMCO on Thursday.
economies are all better off from trading, as they make use of their resources
in the most optimal way. The result of a trade war is more expensive goods of
lower quality and little variety. This goes for all products and commodities,”
Mr. Sand added.
United States is currently running large trade deficits with the European Union
as well as China, in addition to significant deficits with Mexico, Japan and
warns that while steel and aluminum tariffs may just be the “dish of the day”
for the Trump Administration, any major trade action by the United States
against China (or other major trading partners) could spark retaliation that
would be damaging for all countries involved.
international atmosphere is full of threats of retaliation and it appears
likely that major trading partners with the US like the EU and China will hit
back to draw a line in the sand for the US Administration and President Trump,”
BIMCO said in the post.
we are seeing more trade-restrictive measures introduced. Some more high
profile than others. This is a worrying trend that limits demand for shipping
globally,” said Sand.
worse for shipping could be short-sighted political positions that may have
lasting consequences for everyone involved in global industries like shipping
if a largescale trade war emerges,” Sand concluded.