The International Monetary Fund has warned a trade war between the US and China risks making the world a “poorer and more dangerous place” in its latest assessment of the global economy.
The IMF has lowered its forecast for global growth this year and next.
It said that a full-blown trade war between the US and China would put a significant dent in economic recovery.
Its chief economist said further trade barriers would hit households, businesses and the wider economy.
“Trade policy reflects politics and politics remain unsettled in several countries, posing further risks,” said Maurice Obstfeld.
Most recently, China announced new trade tariffs on $60bn of US goods, including products such as liquefied natural gas, produced in states loyal to the US President Donald Trump.