March 2, 2018

By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Global financial institution the International Monetary Fund (IMF) on Friday declined to endorse the announced United States (U.S) tariff by President Donald Trump saying they are likely to cause damage not only outside the U.S., but also to the U.S. economy itself, including to its manufacturing and construction sectors, which are major users of aluminum and steel.

“The import restrictions announced by the U.S. President are likely to cause damage not only outside the U.S., but also to the U.S. economy itself, including to its manufacturing and construction sectors, which are major users of aluminum and steel. We are concerned that the measures proposed by the U.S. will, de facto, expand the circumstances where countries use the national-security rationale to justify broad-based import restrictions. We encourage the U.S and its trading partners to work constructively together to reduce trade barriers and to resolve trade disagreements without resort to such emergency measures.” Gerry Rice, the IMF’s spokesperson said in a statement.

President trump on Thursday said steel imports would face a 25 percent tariff and aluminium 10 percent.

A BBC report after the announcement said Canada and the EU have pledged they would bring forward their own countermeasures. Mexico, China and Brazil have also said they are considering retaliatory steps.

The IMF has cautioned that trade war would hurt all sides