U.S.-China trade war could bring substantial risks to U.S., global economy



the International Monetary Fund is warning the United States that it's escalating trade dispute with China could pose substantial risks to the US economy the IMF also said the trade war could wipe over 450 billion u.s. dollars of global global GDP next year Eason J reports with the trade war raging between the United States and China the head of the IMF Christine Lagarde warned on Thursday that it could have substantial risks for the US and global economy to agree to eliminate the distortions that put a brake on growth and that not only will affect the economy of those countries directly impacted but will also have spillover effects way beyond the shores of those countries and we very strongly believe that a better integrated international trading system is actually conducive to that sustainable strong and balanced growth that is so much needed and as I've said many times nobody wins a trade war and everybody suffers speaking in Washington Lagarde said in order for the global economy to function smoothly it needs to be more open more stable and more transparent we believe that for the global economy to actually function well it needs to be able to rely on a more open more stable more transparent more predictable and rules-based international trade system and as such it will be essential for the US and all its trading partners including the likes of China Mexico and others to agree on a new system meanwhile in a review of US policies the international lenders said the US economy is on track to grow to point six percent this year from his previous growth forecast of two point three percent made in April adding it was boosted by easy financial market conditions however the IMF says number of factors threatened this positive outlook and a called Anki Federal Reserve to hold off on interest rate hikes which would put the brakes on growth the imf's warning came as it released a grim outlook on the global impact of the trade war earlier this week the IMF chief said in a briefing note for the g20 finance ministers and central bank governors that taxing all trade between the world's two largest economies would wipe 455 billion US dollars off global GDP next year an amount of loss larger than South Africa's entire economy Lagarde also criticized the Trump administration's efforts to overhaul the global trade relationship by continuing to raise tariffs stressing the importance of resolving the trade war with Beijing Eason J Arirang news




Comments
  1. Americans have been suffering since very long time and Trump is doing a great job. Manufacturing has to come back to US. Blue-collar jobs are shifting to foreigner countries like never before. There is an imminent threat due to automation and manufacturing leaving America.

  2. The yanks are hurting,why would a population of 327 million try to compete with a population of almost 2 billion that can literally sustain it's own economy.When America for themselves consume more than they produce.They thought trade war would of shown cracks in the Chinese economy to exploit but instead the world is seeing the cracks in the American economy.Soy farmers are literally crying.

  3. US finance its deficit spending through its sale of treasury bills. but there is no buyer. Tariff is another way of raising money from consumers/taxpayers. that's why even if there's a trade deal with china US insist on keeping the tariff in place. US economy is in worst shape than they led you to believe.

  4. I'm telling the same thing from the beginning. Nobody, no country will be benefited from this trade war. Moreover, in a long run, US economy might be in real danger. Actually, they will lose the most. It couldn't be expected by any conscious people because US economy down will hurt global economy and from the mess of global economy, Chinese economy will rise as a superpower because of their cash, daily necessity manufacturing hub, very diligent mass population and prudent leadership. In this scenario, US will not be able to compete with their service based economy against China. US may lose the crown if Trump administration continue the trade war miscalculating the future consequence. Best solution for US is "cooperation & coexisting with China as a dominant power for next half century rather than losing the crown and messing up the economy. China also should consider US economic problems. They can't sustain with a huge trade deficit for a long time. It should be corrected. It should be win-win solution. Let's hope for the best.

  5. The following day that these so-called "experts" warned the US of the trade war, China's economy looks gloomier and US stocks jump more than 200 points. These "economic experts" are now obsolete in Trump's era.

  6. China is not afraid. The U.S. population of 327 milion is made up of consumers. China is starting to develop more in Africa, aka, future consumers, population 1.2 billion.

  7. Translation: Get back under our wing, there are still nations whose souls the IMF have yet to consume and then rent back to their neighbors

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