Today, the International Monetary Fund (IMF) said that the latest trade tariffs that are being enforced by Donald Trump, the President of the United States of America, risked seriously affecting global economic growth.
Christine Lagarde, the managing director of the IMF, said that she is set to deliver a report on how the global economy has been so far affected by the trade tariffs to the finance ministers of the G20 and central bank governors during a meeting that is set to be held in Buenos Aires.
While explaining the said report, Lagarde stated: “It certainly indicates the impact that it could have on GDP (gross domestic product), which in the worst case scenario under current measures is in the range of 0.5 per cent of GDP on a global basis.”
The comments of the IMF director comes a day after President Trump further intensified his aggressive trade dispute with China as he threatened to impose tariffs on all $500 billion of exports of China to the United States. This comes after tariffs have already been imposed on approximately $34 billion worth of goods.
Steven Mnuchin, the treasury minister of the United States, is aiming to push the G7 allies to take on more aggressive actions against China, even though it is not likely that they will take action because of the tariffs imposed by the US on the imports of steel and aluminium from Canada and the European Union.
During the last time that the G20 met, there was no solid agreement that was made regarding trade policy except for a statement that there would be “further dialogue” on the said matter.
Today, Mnuchin informed reporters that he had not observed a macroeconomic effect on the United States from the tariffs that it imposed on steel, aluminium and on the goods from China.