IMF Warns Of Tariff Risk To China's Economy

China's economy is slowing already 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 on Friday.

The International Monetary Fund trimmed its growth forecast for China to 6.2 per cent this year, assuming no new tariffs are imposed, but additional US tariffs of 25 per cent 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 US President Donald Trump announced plans to impose 10 per cent punitive tariffs on US$300 billion in imports, which means that starting September 1 all products from China will be subject to duties in the intensifying trade war.

The Washington-based global crisis lender once again called for a quick resolution to the trade conflict between the world's economic superpowers.

"A further escalation of the trade tensions, for example the US raising tariffs to 25 per cent on remaining imports from (China), could reduce growth by around 0.8 percentage points over the following 12 months," the IMF said.

The impact would have "significant negative spillovers globally." (AFP)