SYDNEY, March 7 (Xinhua) -- The latest plan by U.S. President Donald Trump to impose tariffs on imported steel and aluminum is "highly regrettable" and "bad policy", Australia's central bank chief said on Wednesday.
"History is very clear here, protectionism is costly. It's costly to the country that implements the protectionism and it's costly to everyone else. It's just not the right thing to do," Reserve Bank of Australia Governor Philip Lowe said at the Australian Financial Review Business Summit in Sydney.
Last week, Trump announced his move for a 25 percent tariff on imported steel and a 10 percent tariff on aluminum.
How damaging the tariffs could be remains to be seen, said Lowe.
"If it's just confined to the current higher tariffs on steel and aluminum then it's manageable for the world economy, it's not a positive but it's manageable.
"This could turn very badly though if it escalates.
"If we see retaliation and counter-retaliation, this could turn into a very big shock for the world economy."
At the two-day summit, which saw public and private sector luminaries giving their take on Australian businesses in the global economy, Australian Prime Minister Malcolm Turnbull also reiterated the dangers of a trade war and losses from market barriers.
"History teaches us there are no winners in a trade war. A trade war is a race to the bottom that makes us all poorer, leaves our citizens with less choice and fewer opportunities," said Turnbull.
He said the country has also urged the United States not to impose the higher tariffs on Australian exports.
