The economist did not rule out a global financial crisis due to the introduction of new US duties

The introduction of new US duties on imported goods may provoke a chain reaction that could lead to a global financial crisis, Georgy Ostapkovich, director of the HSE Center for Economic Research and Economic Development, told Izvestia on April 3.

Earlier in the day, US President Donald Trump declared a state of emergency in the country due to the trade imbalance.

"As President of the United States, Trump can be understood: the United States has had a chronic trade deficit since 2002. They're buying more than they're selling, and they're trying to fix it," Ostapkovich said.

In his opinion, there are no winners in trade wars. Perhaps the situation in some categories of goods may improve within a year or a year and a half, but in general this leads to chaos, as the balance between supply and demand is disrupted.

"For a year and a half, the situation will improve for individual goods, but in general it will lead to chaos. The balance of supply and demand will be disrupted, and retaliatory duties from other countries will increase inflationary pressure," the economist explained.

He recalled that the Federal Reserve System (FRS) and the European Central Bank (ECB) have already expressed their intention to raise interest rates, which will lead to a slowdown in economic growth. The European Union and Canada are also preparing retaliatory measures regarding the imposition of duties.

"An increase in interest rates reduces investment activity, increases the risks of recession, and it, in turn, may escalate into a financial and economic crisis similar to 2008-2009. Goods in America will rise in price, inflation will accelerate, and growth will slow down. Some countries may enter a recession and then a full—scale financial crisis," Ostapkovich concluded.

Trade Warrior: How new US duties will affect the global economy

Donald Trump announced the introduction of fees for all products supplied to the United States.

On the same day, the Ministry of Commerce of the People's Republic of China announced that the state would respond to the duties imposed by the President of the United States and protect its rights. According to the agency, an increase in tariffs will not solve the United States' own problems.