IMF To Trump: You Can’t Win Trade War
US President Donald Trump is not a man scared of taking unpopular stands.
His recent controversial move has been threatening to provoke a trade war with China.
China has since responded that it is not afraid.
Now, the International Monetary Fund, IMF’s Managing Director Christine Lagarde is warning Trump to stay away from trade wars, saying that nobody benefits from it.
Lagarde said on Wednesday that nobody wins in a trade war and that the macro-economic impact of U.S. tariffs on imports would be serious if other countries respond with tariffs of their own.
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“The macro-economic impact would be serious, not only if the United States took action, but especially if other countries were to retaliate, notably those who would be most affected, such as Canada, Europe, and Germany in particular,” Lagarde said on French radio RTL.
On Tuesday, U.S. President Donald Trump reiterated his plan to slap big tariffs on imports of steel and aluminum, warning the European Union it would get hit with a “big tax” for not treating the United States well when it comes to trade.
“In a so-called trade war, driven by reciprocal increases of import tariffs, nobody wins, one generally finds losers on both sides,” Lagarde said, adding that she hoped that Trump would not implement the tariffs threat.
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