Title: Donald Trump's Trade Wars Are Hurting the World Economy, IMF Warns
Headings: Donald Trump's Trade Wars Are Hurting the World Economy, IMF Warns
Donald Trump's Trade Wars Are Hurting the World Economy, IMF Warns
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Content: But it also said negotiations between Washington and Beijing remain unresolved and Congress still has not ratified USMCA. There is also a proposal under consideration by the Trump administration to raise tariffs on all imported cars and car parts. "Failure to resolve differences and a resulting increase in tariff barriers above and beyond what is incorporated into the forecast would lead to higher costs of imported intermediate and capital goods and higher final goods prices for consumers," the report said. "Beyond these direct impacts, higher trade policy uncertainty and concerns of escalation and retaliation would reduce business investment, disrupt supply chains, and slow productivity growth. "The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth." Other reasons for slowing global growth include declining growth in China and Europe and recent tightening of monetary policy among central banks. But the IMF warned that countries must urgently move forward on trade or risk causing more damage. "At the multilateral level, the main priority is for countries to resolve trade disagreements cooperatively, without raising distortionary barriers that would further destabilize a slowing global economy," the IMF report said. Request Reprint & Licensing, Submit Correction or view Editorial Guidelines