The International Monetary Fund (IMF) has warned that the trade war between the United States (US) and China will make everyone poor in the world. The IMF stated this in its latest report on the global economy.
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IMF has reduced its forecast of global growth for the current year and next year. The International Monetary Fund says that the loss of the economy from the trade war between the United States and China will be very difficult to overcome.
According to IMF Chief Economist, if this trade war continues, it will have a negative impact on the domestic, business and economic sectors. Recently China had imposed a new trade fee of $60 billion on US goods. U.S. President Donald Trump tweeted that by doing so, China is trying to influence America’s mid-term elections. Trump wrote, “If our farmers and labourers are targeted, we will give China a befitting economic answer.” The US had imposed an import duty of $ 200 billion on China recently.
US-China Trade War Impact
Due to the increase in the trade war between the US and China, the progress of the two countries is expected to be affected in 2019.
The IMF says that China and USA leaders have to work together for the betterment of the people, otherwise the world will be “poor and dangerous”. The US has said that they will charge 25% taxes on the cars imported to the US. The IMF has warned that if this step is implemented then the world’s growth rate may have to suffer massive losses permanently.
In these circumstances, the economy of the US will also suffer, while China’s economic growth rate in 2019 could be less than 5%, whereas the current year’s estimate is of 6.2%.