IMF warns G20 that tariffs hurting economy

Vastavam web: The International Monetary Fund (IMF) warned world economic leaders on Saturday that a recent wave of trade tariffs would significantly harm global growth, a day after U.S. President Donald Trump threatened a major escalation in a dispute with China.IMF Managing Director Christine Lagarde said she would present the G20 finance ministers and central bank governors meeting in Buenos Aires with a report detailing the impacts of the restrictions already announced on global trade.

In the briefing note prepared for G20 ministers, the IMF said global growth may peak at 3.9 percent in 2018 and 2019, while downside risks have increased due to the growing trade conflict.Long-simmering trade tensions have burst into the open in recent months, with the United States and China – the world’ largest and second largest economies – slapping tariffs on $34 billion worth of each other’s goods so far.

The weekend meeting in Buenos Aires comes amid a dramatic escalation in rhetoric on both sides. Trump on Friday threatened tariffs on all $500 billion of Chinese exports to the United States.Mnuchin said that – while there were some “micro” effects such as retaliation against U.S.-produced soybeans, lobsters and bourbon – he did not believe that tariffs would keep the United States from achieving sustained 3 percent growth this year.