Tariff retaliation will hurt Asia’s growth, says IMF

Zebu. The International Monetary Fund (IMF) warned yesterday that tariffs eye for eye They could undermine Asia’s economic prospects, raise costs and disrupt supply chains, even as it expects the continent to remain a key driver of growth in the global economy.

Retaliatory tariffs threaten to disrupt growth prospects across the continent, leading to longer, less efficient supply chainsKrishna Srinivasan, IMF Asia-Pacific director, said at a systemic risk forum in Cebu, Philippines.

Srinivasan’s comments come amid concerns over US President-elect Donald Trump’s plan to impose a 60 percent tariff on Chinese goods and at least a 10 percent levy on all other imports. .

Tariffs could hamper global trade, hamper growth in exporting countries and potentially increase inflation in the United States, forcing the Federal Reserve to tighten monetary policy despite lackluster global growth prospects, he added.

In October, the European Union also decided to increase tariffs on electric vehicles made in China to 45.3 percent, prompting retaliation from Beijing.