A global economic downturn looms as the International Monetary Fund warns of a 0.8% reduction in global GDP by 2023 due to US tariffs on key industries.
The International Monetary Fund (IMF) has warned that the ongoing trade tensions between the US and its trading partners, including China, will have a negative impact on the world economy. The tariffs imposed by the US on a range of goods from steel to electronics are expected to reduce global growth.
US-China trade tensions escalated in 2018, with the US imposing tariffs on Chinese goods worth $50 billion.
China retaliated with tariffs on US goods worth $34 billion.
The dispute centered around intellectual property theft, technology transfer, and market access.
In 2020, the US imposed additional tariffs on Chinese goods worth $75 billion, prompting China to do the same.
The trade tensions have had significant economic impacts, including reduced global trade and increased costs for consumers.
The IMF predicts that the tariffs will lead to a decrease in US economic growth, with the fund estimating a reduction of 0.8% in global GDP by 2023. This is due to the fact that many American companies rely on international trade to produce goods and services. The tariffs will increase the cost of production for these companies, leading to higher prices for consumers.
The impact of US tariffs on global trade will be felt across various industries. For example, the electronics industry is expected to be severely affected, with some estimates suggesting that the tariffs could lead to a 10% decline in global sales. The steel industry is also likely to be impacted, with some countries imposing their own tariffs in response to the US move.
The United States imposes tariffs on various industries to protect domestic businesses and workers.
Tariffs are taxes on imported goods, typically set as a percentage of the product's value.
The US government uses tariffs to achieve economic goals, such as reducing trade deficits or promoting domestic production.
For example, tariffs on steel and aluminum imports were imposed in 2018 to support 'US manufacturers'.
These tariffs can have far-reaching effects, including increased prices for consumers and retaliatory measures from trading partners.
Despite the negative impact of US tariffs on the world economy, the IMF believes that a global recession is unlikely. The fund points out that other factors, such as monetary policy and economic fundamentals, are also at play. Additionally, many countries have built up significant buffers in their foreign exchange reserves, which will help them weather any potential downturn.
The US tariffs imposed by ‘President Trump’ are expected to have a negative impact on global growth. However, the IMF believes that a global recession is unlikely due to other factors and the fact that many countries have built up significant buffers.
Donald John Trump was born on June 14, 1946, in Queens, New York.
He is an American businessman, television personality, and politician who served as the 45th President of the United States from 2017 to 2021.
Trump graduated from the University of Pennsylvania with a degree in economics in 1968.
He took over his family's real estate business, Elizabeth Trump & Son, in 1971 and renamed it The Trump Organization.
Trump was a reality TV star, hosting 'The Apprentice' from 2004 to 2015.
