Italy predicted a drop in global GDP due to US duties

The trade war due to the introduction of US trade duties threatens to drop global GDP by 1.5%,  the governor of the Bank of Italy Fabio Panetta said.

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US President Donald Trump said earlier that he would impose import duties on EU goods because Brussels treats Washington “terribly.” A representative of the European Commission later said that the European Union does not have data on the establishment by the United States of additional duties on European goods, but is ready to “respond decisively” in the event of their introduction.

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“If the tariffs announced in the US president’s election speech had been implemented and retaliated against, global GDP growth would have decreased by 1.5 percentage points,” he said at an event in Turin.

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The head of the Italian Central Bank stressed that for the American economy, the decline could be over 2%.

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For the eurozone, the effect of the confrontation may be more moderate, around 0.5%, but its effects will be more strongly felt by Germany and Italy due to their trade with the United States.