Current and threatened US-China tariffs could slash global economic output by 0.5% in 2020, the International Monetary Fund warned on Wednesday as world finance leaders prepare to meet in Japan this weekend.
IMF Managing Director Christine Lagarde said in a blog and briefing note for G20 finance ministers and central bank governors that taxing all trade between the two countries, as President Donald Trump has threatened, would cause some $455 billion in gross domestic product to evaporate – a loss larger than G20 member South Africa’s economy.
“These are self-inflicted wounds that must be avoided,” Lagarde said in an IMF blog post.
“How? By removing the recently implemented trade barriers and by avoiding further barriers in whatever form,” she added.