IMF warns increasing US tariffs could cut China's growth sharply

International Monetary Fund, IMF, has warned that increasing United States tariffs could cut China's growth sharply. China's economy is slowing already due to the trade conflict with the United States. 

The IMF trimmed its growth forecast for China to 6.2 percent this year, assuming no new tariffs are imposed. But in the past week US President Donald Trump announced a new round of punitive tariffs on Chinese goods, despite a truce agreed



with Chinese President Xi Jinping in May, and Beijing responded by halting all purchases of US agricultural goods. Trump has accused Beijing of trying to keep its currency weaker to gain a trade advantage against the United States.

IMF has called for a quick resolution to the trade conflict between these two countries as the impact would have significant negative spillovers globally.