During the meeting between finance ministers and heads of central banks of the G20 countries, Russian Deputy Finance Minister Sergei Storchak stated that the worst case scenario of the trade war would be the imposition of restrictions on the services sector.
The meeting of finance ministers and heads of central banks of the G20 countries was held on the margins of the joint meetings of the International Monetary Fund and the World Bank.
During the meeting were discussions on the worsening of trade relations between several countries and other factors that could affect global economic stability. The possibility of a sharp worsening of the economic situation in developing countries has been put to the forefront.
Commenting on the aftermath of the trade war, Russian Deputy Finance Minister Sergei Storchak, who attended the meeting, revealed that restrictions on the service sector would do the most damage to the global economy.
“The worst case scenario – it is a real trade war, when sanctions are adopted one after another when they affect both trade in goods and services. There are no restrictions on trade in services today, but there are limited restrictions on goods,” Storchak explained.
“One of the colleagues said that the trade war was declared by only one [country], but everyone suffers from it,” added the deputy minister, stressing that trade tensions should be stopped because they affect global financial stability.
In March US President Donald Trump announced the imposition of import tariffs on steel and aluminum from several countries, which triggered trade tensions with the Chinese. The affected countries have begun to respond by adopting similar measures or by promising to tighten existing restrictions. In addition, the US has introduced tariffs of $200 billion on Chinese products. Beijing has adopted $60 billion in retaliation for US products.
Economists warn that a protracted dispute will ultimately undermine growth not only in the US and China but across the global economy. Concerns about the confrontation have already shaken the financial markets.