Why Trump’s combative trade stance toward allies poses risks
WASHINGTON (AP) — Insulting the host, alienating allies and threatening to suspend business with other countries: President Donald Trump was in full trade-warrior form for the weekend summit of the Group of Seven wealthy democracies in Canada.
His acrimony raised the risk of a trade war that could spook markets, inflate prices of goods hit by tariffs, slow commerce, disrupt corporations that rely on global supply chains and jeopardize the healthiest expansion the world economy has enjoyed in a decade.
Trump threatened to “stop trading” with America’s allies if they defied his demands to lower trade barriers.
Later, calling Prime Minister Justin Trudeau of Canada “very dishonest and weak,” Trump said the U.S. was withdrawing its endorsement of the G-7′s communique, in part over what he called Trudeau’s “false statements” about U.S. tariffs.