The latest Chinese tariff clouds of IMF, World Bank Meeting

Washington: The financial boss of the Washington Assembly this week were prepared to discuss the surprising resistance of the global economy in the face of Donald Trump’s tariffs – until the US trade war did not give up the US President threatening 100% duties for Chinese imports and whipping financial markets. The annual meeting of the International Monetary Fund and the World Bank is now certain that the questions are dominated as to whether Trump’s promise of retaliatory against dramatically widespread exports in China will throw the two largest economies in the world back into a fully blown trade war. Trump’s said his new tariffs and exports would come into force on November 1 and threatened to cancel the meeting with Chinese President Xi Jinping at the end of this month. Obligations would break a delicate trick created by Washington and Beijing for five months, which reduced the three -digit level tariffs and caused improved global GLF growth forecasts.

US Minister of Finance Scott Bessnt tried to return the threat on Monday and said Fox Business Network that they believe that the Trump-Xi meeting would continue and that this week a meeting at the US and China on the outskirts of the MMF and the World Bank will take place.

“100% tariff does not have to happen,” Bessnt said. “The relationship, despite this announcement last week, is good. Communication lines have reopened, so we’ll see where it is going.”

Bessnt added that the US would “stand firm” against the new global Chinese rare countries, while Trump said on Sunday on the Social Media Truth page: “Don’t worry China, it will be all right!”

Volatile markets

A softer tone caused a strong reflection in American events at the beginning of New York trading on Monday, with a technically heavy NASDAQ Composite index of more than 2% and other major indices more than 1%. Trump’s threat on Friday caused a great sale at a time when investors and top politicians were growing, that they were feared a foaming stock market that was driven by an investment boom in artificial intelligence, which some officials worried that they could harm future jobs.

The IMF and World Bank meetings will bring more than 10,000 people to Washington, including finance ministers and central bank governors from more than 190 countries.

Martin Muehleisen, the former head of the IMF strategy, who is now on the Atlantic Council, said Trump’s threats could be posture for negotiating lever effect, but said it would insert volatility into the weekly proceedings.

“Hopefully common sense is prevailing. If Trump returns to 100% of Chinese goods, there will be a lot of pain in the markets,” Muehleisen said.

While China has some leverage over Trump because of its global dominance in rare countries that are necessary for technological production, Muehleisen said there was no interest in Beijing back into the triple digital tariffs.

Growth forecasts hold
Before escalating on Friday, the CEO of the IMF Kristalina Georgieva offered the ability of the global economy to resist more shocks, from customs and uncertainty about the slowing of the US labor market, growing debt level and rapid changes brought by rapid AI adoption. In the view of the world’s economic outlook for the IMF forecasts on Tuesday, Georgieva said last week that the GDP growth rate for 2025 would be just a little less than 3.3%for 2024. On the basis of rates that were originally concerned – including US -čín duties – in July in July, they increased its form compared to TVO Tenths as a percentage.

“What we see is demonstrable resistance in the world,” Georgieva told Reuters in an interview. “But we also say that this is an exceptional time of uncertainty and there are risks in predictions.

G7 focuses on Russia
Finance ministers from a group of seven industrial democracies are expected to meet on Wednesday to discuss the efforts to increase sanction pressure on Russia, the aim of which is to end the war of Moscow against Ukraine.

The source of the British government said that Finance Minister Rachel Reeves wanted to ensure common steps with G7 and European Union countries to reduce Russia’s income and access to overseas assets that correspond to international law. Among these possibilities, which G7 ministers will discuss, is the European Union plan, which uses Russian frozen sovereign assets to support a loan of € 140 billion ($ 162 billion) to Ukraine.

BESSENT AGENDA FOR INSTITUTIONS
The American footprint will be large, ranging from tariffs to the Bessent challenge, to withdraw from the IMF and the World Bank back from climate and gender questions to focus on its basic missions of financial stability and development. The meeting will be a public debut for Dan Katz, new official No. 2 IMF. Member States will observe how Katz, a former investment banker who was the Besse head of the staff, carries out the agenda of the US chief, which also requires stronger CMF criticism for Chinese state economic policy. The market intervention of the US Ministry of Finance on behalf of Argentina, the largest IMF debtor, is also dealing with meetings because Argentine right -wing President Javier Milei will join his ally two blocks in the White House. This step welcomed Georgiev to keep the market reforms of Argentina on the track.

However, Muehleisen, a former IMF official, said that the risk of the fund is promoted by its largest shareholder to promote Trump’s geopolitical goals – increases pressure on China and potentially prolongs more help to US allies such as Argentina without sufficient reforms.

“Is it really still a global, multilateral organization, or is it a little more attachment to the American cash register?” said.