IMF chief: Clouds over global economy are 'getting darker by the day'

Escalating trade tensions are posing an increasing threat to the global economy, the head of the International Moneta...

Posted: Jun 12, 2018 9:26 AM
Updated: Jun 12, 2018 9:27 AM

Escalating trade tensions are posing an increasing threat to the global economy, the head of the International Monetary Fund has warned.

"The clouds on the horizon ... are getting darker by the day," IMF Managing Director Christine Lagarde said at a news conference in Berlin on Monday.

"The biggest and darkest cloud that we see is the deterioration in confidence that is prompted by [the] attempt to challenge the way in which trade has been conducted, in which relationships have been handled and the way in which multilateral organizations have been operating" she said.

Related: Storm clouds are gathering over the global economy

Her comments follow the acrimonious end to the G7 summit in Quebec this weekend in which President Donald Trump attacked Canadian Prime Minister Justin Trudeau over trade.

Tensions were already rising between the United States and key allies ahead of the G7 summit after the Trump administration slapped steel and aluminum tariffs on Canada, Mexico and the European Union in the name of national security.

All three trading partners have announced retaliatory measures.

The United States is also locked in a tense trade dispute with China, the world's second largest economy.

The Trump administration is expected to announce by the end of this week a list of Chinese goods worth around $50 billion on which it will impose steep new tariffs in response to alleged Chinese theft of American intellectual property. The tariffs will go into effect shortly afterward, it said.

Related: Mexico imposes tariffs on $3 billion worth of US exports

The move has thrown into doubt the outcome of trade talks with China, which previously threatened to retaliate with tariffs on a similar amount of US goods, including cars, planes and soybeans.

Speaking alongside Lagarde at the news conference Monday, World Trade Organization Director-General Roberto Azev-do said the rising tensions in global trade "risk a major economic impact, undermining the strongest sustainable period of trade growth since the financial crisis."

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 4302

Reported Deaths: 154
CountyConfirmedDeaths
Multnomah117159
Marion97326
Washington74317
Clackamas31711
Deschutes1270
Umatilla1203
Linn1179
Polk10012
Lane773
Yamhill707
Jackson670
Benton555
Clatsop450
Jefferson440
Klamath440
Malheur320
Coos310
Douglas270
Wasco241
Josephine241
Hood River180
Columbia160
Lincoln150
Morrow120
Curry70
Union60
Tillamook60
Crook60
Wallowa20
Lake20
Sherman10
Harney10
Grant10
Baker10
Unassigned00
Eugene
Broken Clouds
71° wxIcon
Hi: 77° Lo: 47°
Feels Like: 71°
Corvallis
Clear
71° wxIcon
Hi: 78° Lo: 48°
Feels Like: 71°
Roseburg
Clear
78° wxIcon
Hi: 80° Lo: 50°
Feels Like: 78°
North Bend
Clear
62° wxIcon
Hi: 63° Lo: 49°
Feels Like: 62°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events