The International Monetary Fund (IMF) has alerted the global community that the fresh trade tensions between the United States (US) and China were threatening the world economy.
Head of IMF, Christine Lagarde, told journalists at a conference in Paris yesterday that, “clearly the tensions between the United States and China are the threat for the world economy,” adding that recent “rumours and tweets” made any agreement between the countries less likely.
President Donald Trump jolted global markets on Monday by threatening on Twitter that tariffs already imposed on $200 billion in Chinese exports to US would more than double to 25 per cent on Friday from the current level of 10 per cent.
Also speaking at the Paris Forum, French Economy Minister, Bruno Le Maire, warned about the impact of a trade war between the world’s two biggest economies.
Maire said: “We are following the current negotiations very closely between China and the United States and we want them to respect the principles of transparency and multilateralism.”
He called on the two sides to “avoid taking decisions that would threaten and could undermine global growth in the months ahead.”
“Increasing tariffs is always a dead-end and a negative decision for the whole world, for the United States, for China, for the Eurozone, for Europe and world growth,” he said. China said yesterday that its top trade negotiator would visit the US for talks with his American counterparts this week.
The countries have been locked in talks to resolve tensions that have seen both of them imposing tariffs on goods worth $360 billion. US Treasury Secretary Steven Mnuchin described the negotiations as 90 percent complete but told reporters that in recent days the talks went “substantially backwards”, which he blamed on China reneging on previous commitments.
Source: By Bayo Amodu