Lagarde warns of the impact of the trade war on the US economy

Lagarde warns of the impact of the trade war on the US economy

Cairo – the gateway to the center Wednesday, July 18, 2018, 17:54 [19659003ChristineLagardeManagingDirectoroftheIMFBerlin(AFP)-ThePresidentoftheInternationalMonetaryFund(IMF)ChristineLagardewarnedonWednesdaythattheUSeconomywas"particularlyvulnerable"toaglobaltradewarthatcouldresultinthelossofhundredsofbillionsofdollarsofproductgrossdomesticworld

"Signs show that global growth may begin to decline," Lagarde said, urging policy makers to prepare, according to AFP.

International restrictions on trade are "the biggest risk in the short term" on the global economy. The IMF has estimated that the global economy is expected to grow by 3.9 percent in 2019, but "this is perhaps the maximum rate that it can reach," according to Lagarde in his blog [19659004] "Growth has already begun to slow in the euro zone and in Japan and the United Kingdom," adding that the recent US financial stimulus will soon be gone, and IMF economists have prepared a report on the worst-case scenarios in the world. implementation of all the threats to impose fees and the response to the imposition of these fees, with a negative impact on business confidence, which could lead to a decline in gross domestic product "Although all countries will Affected by the trade conflict, the US economy is particularly vulnerable because much of the US trade with the rest of the world will be subject to retaliation, "said Lagarde.Since US President Donald Trump has launched the global trade war, retaliation and the negative impact will be concentrated on the US economy, while other regions will continue to trade.

Trump, who said that trade wars are "good and easy to win" On steel and aluminum imports of his country, angering his main allies and prompting them to immediately react . China has also imposed a 25% tariff on goods worth $ 34 billion and plans to charge US $ 16 billion for goods. And can impose duties on other property worth $ 200 billion at a time that can not exceed September.