IMF, World Bank urge US, China to cool trade dispute

IMF, World Bank urge US, China to cool trade dispute
© Getty Images

The heads of the International Monetary Fund and the World Bank on Thursday urged the United States and China to cool their dispute and abide by world trade rules amid globally tumbling share prices, according to the Associated Press.

ADVERTISEMENT

IMF managing director Christine Lagarde said that while global economic growth remains strong, brutal days for markets in the U.S. and abroad are likely due to interest rates changes in America and uncertainty over trade due to trade disputes between the world's top two economies.

“Our strong recommendation is to escalate work for a world trade system that is stronger, that is fairer and is fit for the purpose,” she said at the IMF-World Bank annual meeting in Bali.

She added that the U.S. and China exchanging tariffs is not helping the situation and that policies focused on establishing a “dominant position” are incompatible with free and fair trade.

The IMF cut its growth projections for 2018-2019 by 0.2 points to 3.7 percent of gross domestic product on Tuesday, citing the U.S.'s trade conflicts.

World Bank President Jim Yong Kim also decried the potential effect of a trade war on developing countries.

“Trade is very critical because that is what has lifted people out of extreme poverty,” he said.

“I am a globalist. That is my job. That is our only chance of ending extreme poverty. We need more trade not less trade.”

President TrumpDonald John TrumpHouse Republicans move to block Yemen war-powers votes for rest of Congress Trump says he's considering 10 to 12 contenders for chief of staff Michael Flynn asks judge to spare him from jail time MORE has consistently pushed for anti-China trade policies during his tenure in the White House, imposing $200 billion worth of tariffs on the country last month.

China responded in kind, placing $60 billion in retaliatory tariffs on the U.S.

With both countries threatening more tariffs in the future, there has been little progress in negotiations to end the trade tensions.