Commenting on the issue of trade wars, David Slater, Director of Trade at KPMG
Commenting on the issue of trade wars, David Slater, Director of Trade at KPMG said:
“UK businesses will be keeping a close eye on the impending trade war between America and Europe. Any escalation will have repercussions for British jobs and global economies.
“CEOs of some of the UK’s biggest companies have told us that the rise of protectionism and threat of trade wars are the greatest risks to future growth. Executives are especially nervous given the uncertainty around the U.K.’s post Brexit position in the global economy.
“The global nature of business means there are no long term winners in either a bilateral or multilateral trade war. The impact is that it simply makes the dynamics of taking sensible international business decisions more risky and new investments are put on hold.
“Using tariffs as a political lever to try and bring nations into a negotiation about future trading relationships could easily backfire. Historically the EU does not respond well to this style of approach. And the longer there is uncertainty at political level the more business will postpone decisions.
“This development will force companies to put their existing business structure under the microscope, particularly their supply chain and customer base to get a handle on who is involved and where the risk of disruption can be mitigated.
“The long term effects of a trade war can lead to a lack of competition, increasing costs for consumers and stifle innovation. This really could be a race to the bottom.”
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