"It’s [trade] not just a threat. It’s like we see it taking a toll," Rice said on Thursday. "We have seen a weakening in manufacturing activity, in particular, to levels not seen since the global financial crisis."
US-China tariffs, including those implemented and announced, could potentially reduce the level of global GDP by 0.8 percent in 2020 with additional losses in future years, Rice said.
When asked about prospects for the global recession, Rice said the IMF uses words like "very precarious, very fragile, delicate," to describe the present situation.
The US-China trade war is no longer just a threat, but is now beginning to weigh down the global economy, Rice added.
The trade row between China and the United States erupted in June 2018 when Washington imposed the first round of its additional trade duties on Beijing. Since then, the sides have exchanged several rounds of duties and are engaged in the talks to settle their disagreements.
