WASHINGTON (Sputnik) - Any further increase in trade tensions between the United States and China could take a heavy toll on trade growth in Latin American and Caribbean countries, the International Monetary Fund (IMF) projected in a new report on Friday.
"Several risks could further harm the outlook for Latin America and the Caribbean," the IMF said in its Regional Economic Outlook for Latin American and the Caribbean. "For instance, escalating trade tensions between China and the US, or a slowdown in some major economies, could result in lower trade growth for the region."
China and the United States have been engaged in a trade war since Trump announced in June that $50 billion worth of Chinese goods would be subject to 25 percent tariffs in a bid to fix the US-Chinese trade deficit. Since then, the two countries have exchanged several rounds of trade tariffs, levying duties on hundreds of billions of dollars of goods.
At the G20 summit in Argentina in December, Trump and Chinese President Xi Jinping agreed to a 90-day truce in their tariff war to allow room for a new trade agreement. The 90-day period is set to end on March 1.
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