LONDON, July 5 (Xinhua) -- The governor of the Bank of England warned on Thursday that the waves of tariffs triggered by the Trump administration will have negative impact on the U.S. and European economy, in a speech in Newcastle, northern England.
Mark Carney said protectionist rhetoric has risen, and it is now turning into action, with the U.S. increasing tariffs and the affected countries retaliating.
"Protectionism affects the real economy through three channels. There are direct effects through reduced trade flows, disrupted supply chains and higher import costs. And there are indirect effects, via business and consumer confidence and financial conditions," said Carney.
If implemented, the tariffs announced thus far will broadly double average bilateral tariff rates, and could raise average U.S. tariffs to rates not seen in over 50 years, he said.
"There are some tentative signs that this more hostile and uncertain trading environment may be dampening activity. For example, survey measures of global export orders and manufacturing output have fallen back from highs at the start of this year, and growth in U.S. and euro area capital goods orders fell to zero in Q1," he said.
