The biggest threat to the economy is Trump's trade policy, says veteran US diplomat

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The biggest threat to the economy is Trump's trade policy, says veteran US diplomat
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The U.S.-China trade war could cost the global economy $700 billion by 2020, the IMF has warned.

that the U.S.-China trade war could cost the global economy $700 billion by 2020.

The world's two largest economies have been embroiled in a trade conflict for more than a year, with each country applying tariffs to billions of dollars' worth of goods from the other. The Chinese and American delegations decided in October to work toward a "phase-one" agreement. Official Commerce Ministry statements indicate that reaching such a deal involves agreeing on greater Chinese purchases of U.S. agricultural products, and a rollback of retaliatory tariffs.

"I imagine there will be some sort of a limited trade deal with China. It won't deal with all of the fundamentals but you'll have a limited agreement that will increase some American exports to China," he said before adding, "There's a decent chance we will get the U.S.-Canada-Mexico agreement through Congress, there's a decent chance we'll also get a U.S.-Japanese bilateral agreement.

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