The IMF has warned that the Trump's administration's new import tariffs threaten to undermine the global trading system and will also likely hurt the U.S. economy.
The comments were made by IMF Managing Director Christine Lagarde on Thursday…
"…As I've said before, the so-called 'trade war' driven by reciprocal increases in import tariff gives no winner. And we find generally losers on both sides. The negative impact on the global economy would be serious not only (IF) the United States takes action, but especially if other countries as a result were to retaliate; notably those that would be most affected such as Canada, such as Germany and other European countries."
She also said America's recent tax cuts may help its economy in the short run, but pose greater risks down the line.
The U.S. Treasury Department hit back,... saying its policies will result in more sustainable economic growth.
