'Start of a downward spiral': Major business group issues red alert on Trump

Andrew Wilson, deputy secretary-general of the International Chamber of Commerce, is issuing a red alert about the trade wars sparked by President Donald Trump in the last day.

The Wall Street Journal reports that Wilson warned that Trump's tariffs against Canada and Mexico could be putting the global economy on the path to an economic depression that rivals the Great Depression of the 1930s.

"Our deep concern is that this could be the start of a downward spiral that puts us in 1930s trade-war territory," he said.

In an interview with the Journal, Wilson said that at the moment the chances of such a catastrophic decision were a "coin flip" and said that the determining factor in whether it would happen would be "whether the U.S. administration is willing to rethink the utility of tariffs."

ALSO READ: 'He called him Donald!' Harris Faulkner aghast over Justin Trudeau's response to Trump

Trump has slapped 25 percent tariffs on all goods from Canada and Mexico, which are America's two biggest trading partners, in addition to a cumulative 20 percent tariff on all goods from China.

These tariffs, as well as retaliatory tariffs from the targeted countries, have sent the stock market sinking in recent days, and online prediction markets have seen bettors increasing odds of a recession occurring within the next year.