IMF says Trump administration's tariffs undermine global trading system

Rising import tariffs and other steps taken by the Trump administration are "undermining the global trading system," increasing restrictions on trade in goods and services, and catalyzing a cycle of retaliatory trade responses, the International Monetary Fund (IMF) said on Thursday.

U.S. President Donald Trump speaks during a ceremony to commemorate the 75th anniversary of D-Day at The Normandy American Cemetery, Thursday, June 6, 2019, in Colleville-sur-Mer, Normandy, France.[Photo: IC]

"Tariff measures are likely to be ineffective at containing bilateral trade deficits and will be damaging to the U.S. and to global macroeconomic outturns," the IMF said in a statement after concluding its annual Article IV consultation to review the U.S. economy.

"Rather than expanding tariff and non-tariff barriers, the U.S. and its trading partners should work constructively to better address distortions in the trading system," the IMF said, adding that it's "especially important" that the U.S.-China trade tensions are "quickly resolved" through a comprehensive agreement that strengthens the international system.

"The U.S. would gain by working with international partners to strengthen the rules-based, multilateral trading system," said the Washington-based international lender.