Trade tensions set to harm long-term US growth – IMF paper
Output would decline even if China voluntarily limits its exports to the US
Several trade dispute scenarios are set to damage the long-term performance of the US economy, says research published by the International Monetary Fund.
In Trade wars and trade deals: estimated effects using a multi-sector model, Carlos Caceres, Diego Cerdeiro and Rui Mano analyse three main scenarios. The first estimates effects from potential US auto tariffs. The second studies a ‘transactional deal’ between the US and China to close their bilateral deficit. The third assesses the impact of
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