Global finance chiefs are set to warn that the broadest and stro-ngest economic expansion since the turn of the decade would be thrown into jeopardy if governments turn inward. In the draft of a statement that finance ministers and central bankers will discuss during talks in Buenos Aires beginning on Monday, the Group of 20 repeated a pledge to refrain from unfair trade practices.
How loyal they are to that commitment is up for question as US President Donald Trump risks sparking a global trade war by imposing tariffs on imported steel and aluminum. The draft made no mention of a united fight against protectionism. Trump’s decision, which takes effect on Friday, will likely dominate the G-20’s two days of discussions as foreign governments lobby for exemptions and threaten retaliation. Bloomberg Economics estimates a full-blown trade war could wipe $470 billion off global gross domestic product by 2020.
Geopolitical tensions and an unexpectedly swift end to easy credit were identified as other risks to the global upswing.