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US trade war would make world ‘poorer’

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Addis Ababa, October 9, 2018 (FBC) – The International Monetary Fund (IMF) has warned a trade war between the US and China risks making the world a “poorer and more dangerous place” in its latest assessment of the global economy.

The IMF has lowered its forecast for global growth this year and next.

It said that a full-blown trade war between the US and China would put a significant dent in economic recovery.

Its chief economist said further trade barriers would hit households, businesses and the wider economy.
“Trade policy reflects politics and politics remain unsettled in several countries, posing further risks,” said Maurice Obstfeld.

Most recently, China announced new trade tariffs on $60bn of US goods, including products such as liquefied natural gas, produced in states loyal to the US President Donald Trump.

In a tweet, Mr Trump warned Beijing against seeking to influence the forthcoming US midterm elections.

“There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!” he said.

US tariffs on $200bn of Chinese imports came into effect last month.

Source: BBC