IMF warns increasing US tariffs could cut China growth sharply

China's ecomy alrey is slowing amid tre conflict with United States, but if Washington were to ramp up tariffs even furr it could cut Chinese growth sharply, IMF warned on August 9.

International Monetary Fund trimmed its growth forecast for China to 6.2 percent this year, assuming new tariffs are imposed, but ditional US tariffs of 25 percent on remaining Chinese goods would cut GDP growth in following year, IMF said in a report.

annual review of China's ecomy -- kwn as Article IV report -- was completed before President Donald Trump anunced plans to impose 10 percent punitive tariffs on USD 300 billion in imports, which means that starting September 1 all products from China will be subject to duties in intensifying tre war.

Washington-based global crisis lender once again called for a quick resolution to tre conflict between world's ecomic superpowers.

"A furr escalation of tre tensions, for example US raising tariffs to 25 percent on remaining imports from (China) , could reduce growth by around 0.8 percent points over following 12 months," IMF said.

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impact would have "significant negative spillovers globally." However, Trump earlier on August 9 cast doubt on chances for a deal, and signaled he might cancel talks planned for September.

Relations have soured furr in past week after Trump anunced a new round of punitive tariffs on Chinese goods, despite a truce agreed with President Xi Jinping in May, and Beijing responded by halting all purchases of US agricultural goods.

US Treasury n declared China a currency manipulator, after yuan lost value in face of new round of tariffs due to take effect September 1.

Trump again August 9 accused Beijing of trying to keep its currency weaker to gain a tre vant against United States.

But IMF in its policy prescriptions for Beijing should ecomic conditions deteriorate and cause yuan to depreciate rapidly, said China might need to use "FX intervention to counter disorderly market conditions."

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