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Mnuchin says Trump’s tariffs will have the opposite effect
U.S. Treasury Secretary Steven Mnuchin on Saturday pushed back against warnings that Washington’s trade fight with China imperils the world economy, saying that pushing Beijing to open up will be good for all. The IMF had warned this week at annual meetings in Bali that the escalating U.S.-China trade confrontation would hobble global economic growth, as the fund lowered its forecasts for this year and next. But Mr. Mnuchin said here that President Donald Trump’s drive to punish China with tariffs to encourage it to adopt fairer trade practices would have the opposite affect. “Our objective with China is very clear: it’s to have a more balanced trading relationship,” he said. “I think that if we are successful, this is very good for U.S. companies, U.S. workers, Europeans, Japan, all of our other allies, and good for China.” He said, however, that the IMF’s warnings were “all the more reason for China to be incented to address these issues with us”. The IMF on Tuesday cut its outlook for global GDP growth by 0.2% points to 3.7% for 2018 and 2019, saying that “everyone is going to suffer” from a clash between the world’s two biggest economies.
Source : https://www.thehindu.com/todays-paper/tp-international/us-china-trade-row-not-a-threat-to-world-economy/article25217768.ece
