IMF MD Christine Lagarde. Picture: GETTY IMAGES/MICHAEL KOVAC
IMF MD Christine Lagarde. Picture: GETTY IMAGES/MICHAEL KOVAC

Paris — International Monetary Fund (IMF) MD Christine Lagarde issued a new warning about global trade tension and the threat it poses to the world economy.

The comments came two days after tweets by US President Donald Trump warning of new tariffs on China, marking an escalation of hostilities amid talks aimed at brokering a solution between the two nations. The US also accused China of backpedaling on commitments made during the negotiations.

“We thought this threat was waning and relations were improving and we were moving toward an agreement,” Lagarde said in Paris. “We hope that is still the case but today rumours, tweets and comments are not very favourable.”

China’s top trade negotiator Liu He still plans to visit the US this week for trade talks. Trump has said he plans to raise tariffs on $200bn of Chinese goods to 25% from 10%, and may also impose duties “shortly” on $325bn of Chinese goods that aren’t currently covered.

“It is imperative for trade tensions to be resolved in a satisfactory way for everyone,” Lagarde said. “Today, clearly the tensions between the US and China are a threat for the global economy.”

Bloomberg