Trade dispute: IMF warns against economic damage from import duties

Global economic growth could be lower by half a percentage point. The US would be most affected, warns IMF chief Christine Lagarde.

Trade dispute: IMF warns against economic damage from import duties

In opinion of International Monetary Fund (IMF), smoldering trade dispute between US, China and European Union could be damaging to global economy as a whole. "In worst case, effect could be on global economic performance in range of 0.5 percent," said IMF director Christine Lagarde at meeting of G20 finance ministers and central bank governors in Buenos Aires. It will submit a report to ministers.

The IMF had calculated various forecasts on basis of recent tariffs on steel and aluminium by United States and subsequent retaliation duties of China and EU. For example, government of Inwashington has volume orders 34 billion dollars of products from People's Republic with additional duties. Chinahat countermeasures to same extent.

In worst case – namely, if customs duties also reduce investor confidence – global economic output could refore be lower in year 2020 by 0.5 percent or 430 billion US dollars than previously anticipated, IMF analyzed

All countries would suffer from negative effects, but US economy would be particularly affected. Many products from United States could be covered with retaliation duties, IMF experts wrote. US Treasury Secretary StevenMnuchin had stated that trade dispute still had keinemarkoökonomischen effects on largest economy.

On Friday, US president Donald Trump threatened to impose duties on chinesischeEinfuhren worth 500 billion dollars. The EU put pressure on threat of measureding car imports with higher tariffs, which would mainly be made by German manufacturers.

Updated Date: 23 July 2018, 12:02

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