>> Despite the smiles and pleasantries between International Monetary Fund director Christine Lagarde and her Argentine hosts at the G20 meeting in Buenos Aires this weekend, she brought words of caution to the party. At a news conference Saturday, she said the recent wave of trade tariffs would significantly harm global growth.
>> But it certainly indicates the impact that it would have on GDP, which in the worse-case scenario under current measures and not taking into account most recent announcement is in the range of 0.5% of GDP on a global basis. In a note to G20 ministers, she said global growth may peak at 3.9% in 2018 and 2019, while downside risks have increased due to the growing trade conflict.
Those trade tariffs mainly coming from the White House where US President Donald Trump on Friday threatened tariffs on all $500 billion of Chinese exports to the US. The threat comes after both countries have already slapped tariffs on $34 billion worth of each other's goods. Meanwhile, US Treasury Secretary Steve Mnuchin has downplayed any harm from the moves, saying there has been no macro effect on the US economy.
And adding that while there's been some retaliation against some US goods like soybeans, lobsters, and bourbon. He believes it won't be enough to stop the US from acheiving a 3% growth rate this year.