The International Monetary Fund chief Christine Lagarde has cautioned the United States against putting up barriers to trade and said trade wars leave no winners. She was responding to a question during an interview with the Argentine newspaper about US President Donald Trump’s recent decision to slap tariffs on imported steel and aluminium.
Ms Lagarde said, poor countries and poor people in rich countries have benefited from the surge in global trade over the past decade, but acknowledged that some regions and industries have suffered.
She said that the effect generated by innovation and trade should be taken into account to remedy that harm, but trying to reduce trade or erect additional barriers won’t generate any winners. Earlier this month, Trump’s sudden decision to impose a 25 percent tariff on steel and 10 percent on aluminium revived fears of a trade war.