Photo: AFPNew Delhi: The resignation of Gary Cohn, the chief economic adviser to Donald Trump, after he failed to dissuade the US president from raising import tariffs on steel and aluminium, has intensified fears of a global trade war. With Cohn’s resignation, Trump will be surrounded largely by advisers who favour aggressive trade measures such as tariff walls, for which Trump campaigned in 2016. Even if a full-fledged trade war does not break out, this could dampen global trade and investment flows. Ever since the global financial crash of 2008 plunged the world into an economic recession, global trade has been weak. Questions regarding the distribution of the fruits of growth have trumped concerns about aggregate economic growth across countries in recent years.

Source: Mint March 07, 2018 18:56 UTC