IMF alarmed: “China-US trade war costs hundreds of billions”

china us trade war

The longer the trade war between the United States and China continues, the greater the damage.

According to the International Monetary Fund (IMF), all import duties already introduced and the recently announced additional rates may cost the world economy 0.5 percentage point in growth next year.

That amounts to around 455 billion dollars or more than the size of the economy of South Africa.

IMF top executive Christine Lagarde says the US and China are shooting themselves in the foot.

After all, the damage can easily be remedied by removing all imposed trade barriers.

She also finds the sanctions that the US recently imposed on Mexico worrying.

In the run-up to the G20 summit in Japan, Lagarde is calling on the economic superpowers to settle trade disputes and also to take steps to modernize the international trading system to ensure that a trade war like this one cannot happen again.

In the eyes of the IMF top woman, for example, the rules at the World Trade Organization (WTO) on subsidies and intellectual property rights are due for renewal.

About Kyle McMillan 80 Articles
Even as a child, Kyle had an inquisitive mind and a deep passion for writing. After completing high school,  he earned a bachelor’s degree in journalism that gave him the opportunity to combine his passions. Today, Kyle is a top writer for Noble Nashville where he contributes pieces in a variety of genres. In his spare time, he enjoys being home with his wife of five years and the couple’s two children.

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