BHP’s boss Mike Henry says global trade revival feels far-fetched
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The news: BHP chief executive Mike Henry told the Bank of America conference it is unrealistic to expect some “grand bargain” between Donald Trump’s White House and China that leads to a resurgence in free and open trade.
What they said: He said the more likely outcome was “ongoing tariffs hedged by bilateral trade agreements”, warning the most damaging scenario was an “escalating global trade war” that “would slow global growth for the remainder of this decade and beyond”.
“We are seeing US tariffs higher than they have been since the 1930s and that has significant implications for the global economy,” he said.
“At one extreme, we see an escalated trade war and long-lasting tariffs. The other bookend, of course, is that there is a resurgence in the realisation of the importance of free and open trade, and there’s a “grand bargain” reached that results in global trade picking up again and supporting growth. I have to say, that scenario feels pretty far fetched at the moment.”
At the same conference, Rio Tinto CEO Jakob Stausholm said the US would need “a lot of materials” to support its economic ambitions and that its US-based mines and plants “are being prioritised”.
“I think the US and the US government is very ambitious about creating more economic activity … and for that they need a lot of materials,” Stausholm said. “We have a big footprint in the US with mines and processing plants, and those assets are more important than ever for the US and are being prioritised.”
