Defuse Tariffs or Risk Recession Says ABI President

Rome: Protectionism and tariffs must be defused or they will cause a new global recession, the president of the Italian Banking Association (ABI), Antonio Patuelli said in his address to its annual assembly Friday.

According to Ansa News Agency, protectionism and tariffs must be “defused” to avoid repercussions on markets and banks, as well as a “new recession,” Patuelli stated in his annual report. He emphasized that if trade wars were to develop, markets would suffer, uncertainty for businesses would increase, credit could deteriorate further, and banks would suffer the consequences.

Patuelli warned, “There would be a risk of a new recession.” He stressed the importance of defusing the risks of protectionism and new tariffs, labeling them as measures as old as the world itself, which penalize free trade, economic and social growth, and global prosperity.

United States President Donald Trump has launched a raft of trade tariffs of various sizes against most of the world’s countries, heightening the concer
ns expressed by Patuelli regarding the potential negative impact on the global economy.