IMF warns increasing US tariffs could cut China growth sharply

China's economy already is slowing amid the trade conflict with the United States, but if Washington were to ramp up tariffs even further it could cut Chinese growth sharply, the IMF warned Friday. The International Monetary Fund trimmed its growth forecast for China to 6.2 percent this year, assuming no new tariffs are imposed, but additional US tariffs of 25 percent on remaining Chinese goods would cut GDP growth in the following year, the IMF said in a report.
The annual review of China's economy - known as the Article IV report - was completed before President Donald Trump announced plans to impose 10 percent punitive tariffs on $300 billion in imports, which means that starting September 1 all products from China will be subject to duties in the intensifying trade war.