{"id":3035,"date":"2018-10-09T01:56:15","date_gmt":"2018-10-09T01:56:15","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/trump-tariffs-make-world-poorer-and-more-dangerous\/"},"modified":"2018-10-09T01:56:15","modified_gmt":"2018-10-09T01:56:15","slug":"trump-tariffs-make-world-poorer-and-more-dangerous","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/trump-tariffs-make-world-poorer-and-more-dangerous\/","title":{"rendered":"Trump tariffs make world &#8216;poorer and more dangerous&#8217;"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"US and China export containers\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/5467\/production\/_103770612_usandchinatrade1.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">The International Monetary Fund has warned a trade war between the US and China risks making the world a &#8220;poorer and more dangerous place&#8221; in its latest assessment of the global economy.<\/p>\n<p>The IMF has lowered its forecast for global growth this year and next. <\/p>\n<p>It said that a full-blown trade war between the US and China would put a significant dent in economic recovery.<\/p>\n<p>Its chief economist said further trade barriers would hit households, businesses and the wider economy.<\/p>\n<p>&#8220;Trade policy reflects politics and politics remain unsettled in several countries, posing further risks,&#8221; said Maurice Obstfeld.<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45556345\" class=\"story-body__link\">US-China trade war: a tale of two Chinas<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-44529600\" class=\"story-body__link\">US-China trade row: The story so far<\/a><\/li>\n<\/ul>\n<p>Most recently, China announced new trade tariffs on $60bn of US goods, including products such as liquefied natural gas, produced in states loyal to the US President Donald Trump.<\/p>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Reuters<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p>In a tweet, Mr Trump warned Beijing against seeking to influence the upcoming US midterm elections.<\/p>\n<p>&#8220;There will be great and fast economic retaliation against China if our farmers, ranchers and\/or industrial workers are targeted!&#8221; he said. <\/p>\n<p>US tariffs on $200bn of Chinese imports came into effect last month.<\/p>\n<h2 class=\"story-body__crosshead\">What are the risks to global growth?<\/h2>\n<p>Global economic growth is now expected to reach 3.7% in 2018 and 2019, down from the IMF&#8217;s previous prediction of 3.9% in July. <\/p>\n<p>It said that risks to the short-term outlook had &#8220;shifted to the downside&#8221;.<\/p>\n<p>Downgrades to global growth also reflected predictions of a slower expansion in the eurozone as well as turbulence in a number of emerging market economies.<\/p>\n<p>Crisis-hit Venezuela is expected to enter its sixth year of recession in 2019, with inflation predicted to hit ten million per cent next year.<\/p>\n<p>Argentina, which recently agreed an IMF bailout, is also predicted to see its economy shrink in 2018 and 2019.<\/p>\n<h2 class=\"story-body__crosshead\">How bad could the trade war get?<\/h2>\n<p>The US and China&#8217;s escalation of trade tariffs is expected to hit growth in both countries in 2019, when the boost from President Trump&#8217;s sweeping tax cuts will also start to wane. <\/p>\n<p>Mr Obstfeld said the world would become a &#8220;poorer and more dangerous place&#8221; unless world leaders worked together to raise living standards, improve education and reduce inequality.<\/p>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p>The IMF warned that the world faced a permanent hit to growth if the US followed through on a threat to impose a 25% on all imported cars, and global tariffs hit business confidence, investment and borrowing costs.<\/p>\n<p>In this worst case scenario, the US economy would take a significant hit, while economic growth in China would drop below 5% in 2019, compared with a current prediction of 6.2%. <\/p>\n<h2 class=\"story-body__crosshead\">What about the UK and Brexit?<\/h2>\n<p>The UK economy is expected to expand by 1.4% this year and 1.5% in 2019.<\/p>\n<p>The IMF said a &#8220;no-deal&#8221; Brexit remained a risk.<\/p>\n<p>It believes Brexit will fundamentally change parts of the UK economy, leaving some workers out of a job.<\/p>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p>It said the government would need to do more to retrain or relocate workers in industries that are &#8220;likely to be more affected by higher trade barriers after Brexit&#8221;.<\/p>\n<p>While the IMF said UK interest rate rises would need to rise over the next few years to keep a lid on inflation, it urged the Bank of England to remain &#8220;flexible&#8221; and ready to move in either direction depending on the outcome of Brexit negotiations.<\/p>\n<p>The IMF predicts that UK public borrowing will keep falling over the next few years.<\/p>\n<p>However, Chancellor Philip Hammond is still expected to borrow around \u00a316bn in 2023 to plug the gap between tax revenues and public spending.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45789669\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images The International Monetary Fund has warned a trade war between the US and China risks making the world a &#8220;poorer and more dangerous place&#8221; in its latest assessment of the global economy. The IMF has lowered its forecast for global growth this year and next. It said that a full-blown trade &hellip; <\/p>\n","protected":false},"author":0,"featured_media":3036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3035"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/3036"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}