With global progress already dropping down, starting a trade dispute now amid the U.S. and the EU (European Union) will be both an economical and political mistake, Bruno Le Maire—French Finance Minister—said. That caution came in reply to a question from CNBC regarding if Le Maire felt worried that the upcoming step of a global trade spat would center on the U.S. and the EU. In Twitter posts, the U.S. President Donald Trump smacked at the bloc, stating it is “a brutal trading partner.” During the World Bank and IMF (International Monetary Fund) summit in Washington, the French minister reported to CNBC, “We have to avert a trade war. We are dealing with a slowdown at the international and the European level and the ground why there is such a financial slowdown is that there are trade disputes across the globe.”
He further added, “There is trade nervousness amid the U.S. and China. We should not add up trade tensions amid the U.S. and the EU, as it would be a political and an economic mistake.” Since taking office, Trump has called out top trading partners counting the EU, Canada, and China for what he deemed as unreasonable practices that impacted American companies and workers. Reportedly, Trump has increased tariffs on some of the U.S. imports, which caused a global trade spat that many administrations and analysts blamed for hampering economic activity.
Recently, the IMF was in news as its chief stated that Brexit delay averted a “terrible outcome.” The 6-Month postponement of Britain’s departure from the EU averts the “terrible result” of a “no-deal” Brexit that will further pressurize a slowing global financial system but does nothing to eliminate uncertainty on the final outcome, the head of the IMF said.