WASHINGTON - Tariffs that have been imposed or threatened by the United States and China could shave 0.8% off global economic output in 2020 and trigger additional losses in future years, the International Monetary Fund said on Thursday.
IMF spokesman Gerry Rice said trade tensions were beginning to affect a world economy that is already facing challenges, including a weakening of manufacturing activity not seen since the global financial crisis of 2007-2008.
Rice, speaking at a regularly scheduled IMF news conference, said the global lender is due to release a new revised economic outlook next month, but provided no details.
The pace of world economic activity remained subdued, with rising trade and geopolitical tensions causing uncertainty and eroding business confidence, investment and trade, he said.
The IMF had previously forecast that the U.S.-China trade war and other trade disputes threatened global growth in the future, but Rice said the impact was now being felt.