IMF warns world economy could be 'torn apart' by ongoing trade war

German recession concerns

Tom Eckett
clock • 2 min read

The ongoing threat of a trade conflict between the US and China has the potential to significantly impact the upswing in global growth, according to the International Monetary Fund.

In its latest World Economic Outlook, the IMF warned US President Donald Trump's trade tariffs and Chinese retaliation could damage global activity and sentiment. After months of warnings of a potential trade war, the President finally took action on 3 April 2018, placing 25% tariffs on roughly 1,300 Chinese goods, which will target about $50bn of 2018 imports. China's response followed less than 24 hours later, which was to target up to $50bn on 106 US products annually. President Trump subsequently threatened to place an additional $100bn of tariffs on Chinese goods. Maurice Obst...

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