Escalating U.S.-China Trade Tariffs Would Be ‘Costly for Everybody,’ Warns IMF Deputy Director
The International Monetary Fund’s (IMF) deputy director has issued a stark warning about the potential economic fallout from escalating trade tariffs between the U.S. and China. As tensions between the two global superpowers continue, the IMF official emphasized that increasing tariffs would have significant repercussions, not just for the two nations, but for the global economy as a whole.
“Escalating tariffs would be costly for everybody,” the deputy director said, highlighting the ripple effects that could disrupt supply chains, raise consumer prices, and slow down economic growth worldwide. The U.S.-China trade relationship has been strained in recent years, with both countries imposing tariffs on a wide range of goods, from technology to agricultural products.
The IMF is urging both countries to prioritize dialogue and cooperation over further trade restrictions, warning that continued escalation could trigger deeper economic uncertainty at a time when the global economy is already grappling with inflation and post-pandemic recovery challenges.
As the trade dispute intensifies, economists fear that heightened tariffs could lead to higher costs for consumers, reduced business investment, and slower growth, making it imperative for both sides to seek a resolution.
