IMF urges global leaders to resolve trade tensions rapidly, as China tells US to ‘cancel all unilateral tariffs’ – business live

IMF chief Kristalina Georgieva is urging global leaders to resolve trade tensions rapidly.

Speaking at a press conference to discuss her Global Policy Agenda, Georgieva warns that the world economy is facing “a new and major test”, at a time where its policy buffers are depleted after the shocks of recent years.

That puts countries in a difficult position, Georgieva says, and also creates “urgency for action”.

She says there are three “overarching priorities”, starting with ending the trade war that Donald Trump ignited this year.

Georgieva says:

First and most urgent [is] for countries to work constructively to resolve trade tensions as swiftly as possible, preserving openness and removing uncertainty.

A trade policy settlement among the main players is essential, and we are urging them to do it swiftly, because uncertainty is very costly.

Georgieva explains that businesses cannot invest if they do not have certainty, while households will save rather than spend.

But in a nod of support to the White House, Georgieva says countries also need to address the imbalances that are fuelling today’s trade tensions.

Some countries, like China, need to boost private consumption and embrace a shift to services. Others, like United States, need to reduce their fiscal deficit, she explains.

Europe needs to complete the single market, banking union, capital market union, and remove internal barriers to intra EU trade, insists Georgieva (a former European commissioner herself).

And all countries should seize this moment to lower their trade barriers, both tariff and non tariff, she added.