IMF: Trump’s trade war is significantly harming world economic health | City A.M.

The International Monetary Fund (IMF) today said recent trade tariffs being enforced by US President Donald Trump risked seriously impacting global growth.

IMF managing director Christine Lagarde said she will give a report on how the global economy has been impacted by the trade tariffs to G20 finance ministers and central bank governors at a meeting in Buenos Aires.

Explaining the report, Lagarde said: “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.”

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It comes a day after Trump further escalated his fierce trade dispute with China as he threatened tariffs on all $500bn of Chinese exports to the United States. Tariffs have already been placed on around $34bn worth of goods.

US treasury minister Steven Mnuchin is aiming to push G7 allies to take more aggressive action against China, although it’s unlikely they’ll take action due to tariffs on steel and aluminium imports from the EU and Canada.

Last time the G20 met, there was no firm agreement made on trade policy besides a statement that there would be “further dialogue” on the matter.

Mnuchin today told reporters he had not seen a macroeconomic impact on the US from its tariffs on steel, aluminium and Chinese goods.

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