World finance chiefs hope to defuse the tensions in trade between Washington and Beijing. However, they are not making any breaks in the US so far. The global commerce chiefs are at the moment pressing both China and the US to refrain from any abrupt unilateral trade actions. On Thursday, there was little progress on commerce between these two economic superpowers during a smaller G-7 officials meeting. The central bank’s chiefs and the ministers of finance from the group 20 top world economies met for dinner and are holding some meetings this coming Friday at the World Bank and the International Monetary Fund.
Phillip Hammond, who serves as the Chancellor of the Exchequer in the United Kingdom said that that most economies in the G-20 were ambassadors of a free trade market. Mr Hammond added that most of his colleagues did not believe in solving problems through imposing trade tariffs on the imports of a particular country. He also said that he was urging both Washington and Beijing to desist from resolving trade disagreements using the imposition of commerce barriers such as tariffs as it would only serve to inhibit a free global trade system.
The officials who met in Washington have had an overriding message saying that the tensions between China and the US could erode the confidence of investors and business in general at a time when global economic growth is at its highest in years. Washington has been the main focus of the meeting since it announced the imposition of tariffs on aluminum and steel imports from China. The Managing director of the IMF, David Lipton told reporters that the G-7 countries need to pivot their positions in the global market firmly. Mr Lipton said that for the United States to achieve its goals as a global leader in free commerce, it needs to let go of its unilateral trade pressures against China or any other country.
The G-7 officials expressed their concerns to the US Secretary of the Treasury Steven Mnuchin regarding the detrimental effects of the trade wars with Beijing. However, sources that are familiar with the matter and that have sought to remain anonymous have said that the matter was not subject to further discussions. The spokesperson for the Treasury refused to make any comments to reporters about what was discussed in the meeting. The European Union is also pressing the US to give an exception from steel and aluminum import levies on a permanent basis.