IMF chief warns trade war will harm global growth

AFP, PARIS: The head of the International Monetary Fund warned yesterday that a trade war US President Donald Trump apparently intends to provoke with tariffs on steel and aluminium would snuff out global growth.

"If international trade is called into question by these types of measures, it will be a transmission channel for a drop in growth, a drop in trade and it will be fearsome," Christine Lagarde said on RTL radio.

"In a trade war that will be fed by reciprocal increases of customs tariffs, no one wins," she added.

Trump boasted last week on Twitter that trade wars are "easy to win" after his initial announcement of 10 percent tariffs on imports of aluminium and a 25 percent levy on steel brought into the United States provoked a global outcry.

US allies have threatened to retaliate by slapping tariffs on US goods entering their markets. The EU is expected to detail its retaliatory measures on Wednesday.

"We are anxious that these are not triggered, we are urging the sides to reach agreements, hold negotiations, consultations," said Lagarde.

The IMF chief said that to a certain extent she understood the US president's frustration with the global trade system.

 

IMF chief warns trade war will harm global growth

AFP, PARIS: The head of the International Monetary Fund warned yesterday that a trade war US President Donald Trump apparently intends to provoke with tariffs on steel and aluminium would snuff out global growth. If international trade is called into question by these types of measures, it will be a transmission channel for a drop in growth, a drop in trade and it will be fearsome, Christine Lagarde said on RTL radio. In a trade war that will be fed by reciprocal increases of customs tariffs, no one wins, she added. Trump boasted last week on Twitter that trade wars are easy to win after his initial announcement of 10 percent tariffs on imports of aluminium and a 25 percent levy on steel brought into the United States provoked a global outcry. US allies have threatened to retaliate by slapping tariffs on US goods entering their markets. The EU is expected to detail its retaliatory measures on Wednesday. We are anxious that these are not triggered, we are urging the sides to reach agreements, hold negotiations, consultations, said Lagarde. The IMF chief said that to a certain extent she understood the US presidents frustration with the global trade system.