[Published: Tuesday February 05 2019]
 UN warns of 'massive' impact of tariff hike
NEW YORK 5 Feb (ANA) - A UN trade official has warned a US plan to raise tariffs on Chinese goods next month would have "massive" implications for the global economy.
The US plans to increase tariffs on Chinese goods if the two sides fail to make progress on a trade deal by 1 March.
The comments followed a report by a UN trade agency on the impact of the US-China trade war.
It said Asian countries are likely to suffer most from protectionism.
The US and China are locked in a damaging trade dispute that has seen both sides levy tariffs on billions of dollars worth of one another's goods.
In December, both countries agreed to hold off on new tariffs for 90 days to allow for talks.
The US and China have a deadline of 1 March to strike a deal, or the US has said it will increase tariff rates on $ 200bn (£ 152bn) worth of Chinese goods from 10% to 25%.
The UN Conference on Trade and Development (Unctad) has warned that there will be huge costs if the trade war escalates.
"The implications are going to be massive," Pamela Coke-Hamilton, Unctad's head of international trade, said at a news conference.
"The implications for the entire international trading system will be significantly negative."
Smaller and poorer countries would struggle to cope with the external shocks, she said.
The higher cost of US-China trade would prompt companies to shift away from current east Asian supply chains.(ANA)
FA/ANA/5 February 2019------------
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