By Eugenio Cerutti, Assistant to the Director at IMF's Research Department, Gita Gopinath, Economic Counsellor and Director of IMF's Research Department, and Adil Mohommad, Economist in IMF's Research Department
US-China trade tensions have negatively affected consumers as well as many producers in both countries. The tariffs have reduced trade between the US and China, but the bilateral trade deficit remains broadly unchanged. While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains, and jeopardize the projected recovery in