Escalation of economic tensions between the United States and China could lead to a slowdown in global economic growth, according to Krishna Srinivasan, head of the Asia-Pacific Department of the International Monetary Fund (IMF).
„In our report, we consider a negative scenario based on the potential negative impact of tariffs and supply chain disruptions. In our Global Economic Prospects report, we noted that underlying growth will be 3.1% next year.“ “If the risks of higher tariffs and supply chain disruptions prove to be real, growth could be 0.3 percentage points lower,” he said in an interview with Bloomberg TV, responding to a reporter’s question about how the recent escalation of trade tensions between the United States and China would affect global economic growth forecasts.
US President Donald Trump had previously announced Washington’s intention to increase tariffs on China by 100%, effective November 1 or earlier, and impose controls on software exports. The US leader later said the US was already in a state of trade war with China.