The IMF asks the US to maintain “open trade policies” with China

The International Monetary Fund (IMF) called this Thursday USA to maintain open trade policies, after the recent increase in tariffs that the Government of Joe Biden implemented on Chinese products and that could increase friction between the two powers.

“With respect to tariffs, our opinion is that the United States would be better off if it maintained open trade policies, which have been vital to its economic performance,” the Fund’s spokeswoman said at a press conference. Julie Kozack.

Biden announced new tariffs worth US$18 billion on imports of products from China, with electric vehicles being the most punished with taxes that go from 25% to 100%.

“We encourage USA and China to work together towards a solution that addresses the underlying concerns that have exacerbated trade tensions between the two countries and, more broadly, we urge all countries to work within the multilateral framework to resolve their differences,” Kozack said.

The IMF, he recalled, supports “an open and rules-based trading system,” which has been “fundamental to economic growth and stability over recent decades.”

However, it is “important to recognize that not all communities and people have benefited equally from an integrated global economy” and “to pay greater attention to ensuring that the benefits of trade are shared more equitably across societies,” Kozack said. without defining which countries it refers to.

The Fund spokesperson recalled that In recent years there has been a notable increase in trade restrictions, 3,000 in 2023 compared to 1,000 documented in 2019a situation that can “fragment the global economy and supply chains and trigger retaliatory actions.”

“A fragmentation of this type can be very costly for the global economy,” he warned, with global losses ranging from 0.2% of world GDP to 7%, according to IMF calculations.