IMF leader Lagarde warns against trade protectionism
WASHINGTON — The head of the International Monetary Fund said Wednesday that after six years of disappointing growth, the world economy is finally gaining momentum. But she warned of potential threats, from political uncertainty in Europe to protectionism that could hinder trade.
Christine Lagarde, the IMF’s managing director, said there is a critical need for more international co-operation. Restricting trade flows would be a “self-inflicted wound” that would harm workers and consumers, she said in a speech previewing next week’s meetings in Washington of the 189-nation IMF and its sister lending organization, the World Bank.
In the speech in Brussels, Lagarde did not single out any country for criticism on the issue of protectionism. In his campaign, President Donald Trump had vowed to impose punitive tariffs on goods from countries that he thinks harm American workers by flouting trade rules.
Trump has threatened to slap tariffs as high as 45 per cent on goods from China and Mexico unless those nations stop practices that he says violate trade laws.