WASHINGTON (Sputnik) – The United States and China should resolve their ongoing trade dispute with a comprehensive deal that bolsters the international financial system, the International Monetary Fund (IMF) said in a staff report on Monday.
“It is especially important that the trade tensions between the US and China – which represent a threat to the global outlook and create important negative spillovers to other countries – are quickly resolved through a comprehensive agreement that strengthens the international system,” the report said
US President Donald Trump is expected to meet with Chinese President Xi Jinping at the upcoming G20 summit in Japan this week to try to resolve their ongoing tariff dispute.
US Commerce Secretary Wilbur Ross said last week that Trump is ready to put tariffs on an additional $300 billion of Chinese imports if the United States and China fail to reach a trade agreement. Ross also downplayed the potential that an agreement could be reached at the G20 summit.
The United States and China have been trying to overcome disagreements that emerged in the wake of Trump’s decision last June to impose the 25 percent tariffs on $50 billion worth of Chinese goods in a bid to fix the trade deficit. Since then, the two sides have exchanged several rounds of tariffs.
In May, the United States escalated the trade dispute with China when it included another $200 billion worth of Chinese goods in the 25 percent tariff category. China pledged to retaliate by hiking tariffs on $60 billion worth of US imports in June.