On Tuesday, the International Monetary Fund’s head said that the new tension between China and the United States were the main “threat for world economy”.
During a conference in Paris, Christine Lagarde told source that “clearly the tensions between the United States and China are a threat for the world economy,” adding that a recent Christine “rumors and tweets” made an agreement between the countries less likely.
On Monday, United States President Donald Trump has knocked the global markets by threatening on Twitter, tariffs already inflict on $200 billion in Chinese exports to the US would more than double to 25% from the existing 10%.
While speaking at the Paris Forum Event, French Economy Minister Bruno Le Maire has warned about the consequences of a trade war between the US and China, which is the world’s two biggest economies.
Le Maire said, “We are following the current negotiations very closely between China and the United States and we want them to respect the principles of transparency and multilateralism.”
He further called on the two sides to “avoid taking decisions that would threaten and would undermine global growth in the months ahead,” adding that “Increasing tariffs is always a dead-end and a negative decision for the whole world, for the United States, for China, for the eurozone, for Europe and world growth.”
Today, China reports that its top trade negotiator will visit the US to talk with his US counterparts this week. Both the nations have been locked in talks to settle down tensions, which have encountered both of them impose tariffs on goods amounted $360 billion.
Treasury Secretary Steven Mnuchin has expressed the negotiations as 90% complete but told sources that in recent days the talks went “substantially backward” that he blamed on China retracting on previous commitments.