IMF warns US-China tariffs to slash global growth in 2020

IMF Managing Director Christine Lagarde speaks at the Spring Meetings of the World Bank Group and IMF in Washington April 11, 2019. — Reuters pic
IMF Managing Director Christine Lagarde speaks at the Spring Meetings of the World Bank Group and IMF in Washington April 11, 2019. — Reuters pic

WASHINGTON, June 5 — Current and threatened US-China tariffs could slash global economic growth by 0.5 per cent in 2020, the International Monetary Fund warned today as world finance leaders prepare to meet in Japan this weekend.

IMF Managing Director Christine Lagarde said in a blog and briefing note for G20 finance ministers and central bank governors that taxing all trade between the two countries, as President Donald Trump has threatened, would cause some US$455 billion (RM1.8 trillion) in gross domestic product to evaporate — a loss larger than G20 member South Africa’s economy.

“These are self-inflicted wounds that must be avoided,” Lagarde said in an IMF blog post. “How? By removing the recently implemented trade barriers and by avoiding further barriers in whatever form.” — Reuters