The International Monetary Fund has finally stepped in a trade war between US and China continues to sizzle.
The international monetary organization said the trade war and tariff retaliation may result to a “significant economic cost” to the global economy, said a report.
ABS-CBN said the United States has recently imposed a $200 billion tariff on Chinese produce. China, on the other hand, has retaliated with a $110 billion for US goods.
“It’s time to take a stand on China. We have no choice. It’s been a long time. They’re hurting us,” said US President Donald Trump in a Bloomberg report.
Meanwhile, the South China Morning Post reported that China is considering other means to hurt the US economy after it rapidly ran out of room “to use tariffs as a weapon.”
“It is becoming increasingly clear to Chinese officials that the chances of a swift end to the trade war are diminishing rapidly, forcing them to explore new ways to respond,” the report read.
Financial expert Arthur Kroeber said that China will “respond with its own tariffs, start squeezing US companies where it can, and dig in for a war of attrition.”
However, US companies are not very excited with all the trade war that Trump is involving himself in as it is “increasing uncertainty and boosting costs,” according to a Bloomberg report. This includes no less than Walmart, who reportedly wrote a letter to Trump on this matter.
“Companies cannot shift their supply chains on a dime. It takes months, if not years, to find new suppliers who can meet all of a retailer’s sourcing requirements,” said the federation’s vice president of supply chain and customs policy, Jonathan Gold, adding that “these tariffs will unfairly punish U.S. companies and ultimately U.S. consumers.”