CEBU, Philippines Reuters The International Monetary Fund IMF warned on Tuesday that titfortat tariffs could undermine Asia39;s economic prospects, raise costs and disrupt supply chains even as it expects the region to remain a key engine of growth for the global economy.

The titfortat retaliatory tariffs threaten to disrupt growth prospects across the region, leading to longer and less efficient supply chains, IMF AsiaPacific Director Krishna Srinivasan said at a forum in Cebu on systemic risk.

Srinivasan39;s remarks come amid concerns over U.S. Presidentelect Donald Trump39;s plan to impose a 60 tariff on Chinese goods and at least a 10 levy on all other imports.

Tariffs could impede global trade, hamper growth in exporting nations, and potentially raise inflation in the United States, forcing the U.S. Federal Reserve to tighten monetary policy, despite a lacklustre outlook for global growth.

In October, the European Union also decided to increase tariffs on Chinesebuilt electric vehicles to as much as 45.3, prompting retaliation from Beijing.

The IMF39;s latest World Economic Outlook forecasts global economic growth at 3.2 for both 2024 and 2025, weaker than its more optimistic projections for Asia, which stand at 4.6 for this year and 4.4 for next year.

Asia is witnessing a period of important transition, creating greater uncertainty, including the acute risk of escalating trade tensions across major trading partners, Srinivasan said.

He added that…