After China, the US will ratchet up trade tensions with the EU, OECD chief economist warns



Sam Meredith | CNBC

  • “I think by undermining the multi-lateral rules-based system on trade, we have just injected a massive dose of uncertainty in the world that will stay with us for a long time,” Laurence Boone, chief economist at OECD, told CNBC on Friday.
  • The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods over the past year, battering financial markets and souring business and consumer sentiment.
  • Meanwhile, American and European negotiators are at loggerheads over what to include in their own prospective trade deal.

Once the U.S. and China have reached a trade deal, the world’s largest economy will amplify tensions with the European Union, according to the chief economist of the Organization for Economic Co-operation and Development (OECD).

Her comments come as market participants continue to monitor the prospect of a comprehensive trade agreement between Washington and Beijing.

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