IMF warns: US China trade and tariff tensions' will cost everyone '

This week, the International Monetary Fund (IMF) and the World Bank Group held their autumn annual meetings in Washington. According to Bloomberg on the 25th, the potential tariffs that the United States may impose on China in the future are looming over this meeting, and many attendees are concerned that tariff escalation will harm global trade. IMF First Vice President Gita Gopinath warned in an interview with the US Consumer News and Business Channel that the trade and tariff tensions between China and the US "will cost everyone".

According to Bloomberg, at the meeting, finance ministers and central bank governors from around the world exchanged views on issues such as interest rates and inflation. The official agenda is mainly focused on policy negotiations, but in small-scale conversations, the hot topic is Trump's tariff proposal. Previously, Trump claimed to impose a 60% tariff on Chinese goods and a 20% tariff on goods from other countries.

The IMF warned at this meeting that the US election is bringing "high uncertainty" to the market and policymakers. European Central Bank President Christine Lagarde said that whoever wins the election should be wary of damaging global trade. German Finance Minister Christian Lindner also expressed a similar view, telling Bloomberg: "Any form of trade conflict will harm the interests of both parties

On the 23rd, Gita Gopinath also stated in an interview with CNBC that China and the United States should maintain a "good working relationship", which is very important for the world and "in the interests of everyone". The IMF's model shows that if the tariff dispute between China and the United States escalates, the economic growth of all countries will be greatly affected. (Economic) output will be much lower than our predictions for countries around the world, and inflation will face pressure, so this is not the direction we should go. "Gopinath believes that global trade is being influenced by geopolitics, and although the proportion of global trade volume to the total global economy has not changed significantly, the trade partners have changed. She stated that trade between China and the United States is declining, and some trade activities are being conducted through other countries.