THE IMF WARNS OF A MAJOR THREAT TO THE US ECONOMY
The International Monetary Fund (IMF) has warned the United States against further escalation of trade disputes and the sudden slowdown in financial markets, which pose serious risks to the US economy, especially in the context of the trade war with China.IMF officials said Thursday that the US financial system is increasingly vulnerable and economic conditions may falter as investors are more concerned about US trade disputes.
“Trade disputes are the risk factor that we feel is the biggest concern for the US economy,” said Nigel Chuck, head of the IMF mission.
In his report, the IMF criticized attempts by the administration of US President Donald Trump to reform global trade relations by increasing tariffs.
The report stressed that it is particularly important to resolve the trade dispute with China as a threat to the global economy.
“Import duties have increased, and other steps taken by the US administration undermine the global trading system,” the report said.
“The regulators of the US financial sector have not done enough to address growing weaknesses in the financial system,” he warned, warning of potential damage to the US economy.
The trade war between the United States and China escalated last month after trade negotiations reached a standstill, with Washington accusing Beijing of backtracking on an imminent deal that the two countries’ officials were close to completing.
Trump also raised tariffs from 10 percent to 25 percent on Chinese goods worth 200 billion dollars, bringing China an increase in tariffs on US goods worth 50 billion dollars. The US administration also included the Chinese telecom giant Huawei on its black list.