IMF: U.S. tariffs on China may harm global economic growth Kozak | Review | IMF
China News Service, May 17. According to the official website of the International Monetary Fund, on the 16th local time, the International Monetary Fund stated that new punitive tariffs imposed by the United States on Chinese goods may fragment the global economy and supply chains and harm global economic growth. and stability. On the contrary, maintaining an open trade policy is more in line with the United States' own interests.
According to reports, on the same day, International Monetary Fund spokesperson Julie Kozak said at a regular press conference regarding the "U.S. increase in tariffs on China" that the International Monetary Fund supports an open and rules-based trading system. This system is critical to global economic growth and stability.
Kozak further pointed out that trade restrictions have increased significantly in recent years. In 2023, the International Monetary Fund determined that there will be approximately 3,000 global trade restrictive measures, compared with only 1,000 in 2019.
"These restrictions will distort trade and investment, fragment the global economy and supply chains, and trigger retaliatory actions. Such fragmentation may be costly to the global economy," Kozak emphasized.
Kozak pointed out that International Monetary Fund research shows that the scope of global losses caused by this division is large, and may reduce global economic output by up to about 7%, which is equivalent to reducing the combined GDP of Japan and Germany.
Kozak also said that the International Monetary Fund believes that the United States is best to maintain an open trade policy that is critical to its economic performance and "encourages the United States and China to work together to find a solution."
On May 14, local time, the United States released the results of the four-year review of the additional Section 301 tariffs on China, announcing that on the basis of the original Section 301 tariffs on China, it would further increase its tariffs on electric vehicles, lithium batteries, photovoltaic cells, key minerals, and other imported products from China. Additional tariffs will be imposed on semiconductors, steel and aluminum, port cranes, personal protective equipment and other products.
In this regard, the spokesperson of the Chinese Ministry of Commerce said on the same day that out of domestic political considerations, the United States abused the Section 301 tariff review process and further increased the Section 301 tariffs imposed on some Chinese products, politicizing and instrumentalizing economic and trade issues. This is typical. Political manipulation, China expresses strong dissatisfaction with this.