- U.S.-China trade tensions certain to dominate IMF, World Bank annual meetings
- Finance ministers, central bankers from more than 190 countries coming to Washington
- G7 to discuss sanctions on Russia, Ukraine aid options
Washington, D.C
Trump’s reignited trade war with China clouds IMF, World Bank meetings
WASHINGTON, Oct 13 (Reuters) – Finance chiefs gathering in Washington this week were ready to discuss the global economy’s surprising resilience in the face of Donald Trump’s tariff assaults – until the U.S.-China trade war erupted again with the U.S. president threatening 100% duties on Chinese imports and sending markets into a tailspin.
The annual meetings of the International Monetary Fund and World Bank are now certain to be dominated by questions over whether Trump’s vow to retaliate against China’s dramatically expanded export controls on rare earths will plunge the world’s two largest economies back into a full-blown trade war.
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A delicate truce crafted by Washington and Beijing over the past five months brought tariffs down from triple-digit levels and prompted upgrades to the IMF’s global growth outlook. Plans for Trump to meet with Chinese President Xi Jinping later this month fueled hopes for a further thaw.
But that optimism was shattered on Friday as Trump threatened to cancel the meeting and impose a “massive increase” in tariffs on Chinese goods, along with other countermeasures.
Souring the mood further was China’s move on Friday to match new U.S. port fees for Chinese-built or owned vessels with its own levies on port calls by ships built or flagged in the U.S. or owned by companies more than 25% owned by U.S.-domiciled investment funds.
The IMF and World Bank meetings will bring more than 10,000 people to Washington, including finance ministers and central bank governors from more than 190 countries.
Martin Muehleisen, a former IMF strategy chief who is now with the Atlantic Council, said Trump’s threats may be posturing for negotiating leverage, but said they will inject volatility into the week’s proceedings.
“Let’s hope that sanity prevails. If Trump goes back to 100% tariffs on Chinese goods, there’s going to be a lot of pain in the markets for him,” Muehleisen said.
Trump’s threat on Friday triggered the biggest U.S. stock sell-off in months at a time when investors and top policymakers were already growing anxious about a frothy stock market fueled by an investment boom in artificial intelligence that some officials fear could hurt future employment.
While China has some leverage over Trump due to its global dominance in rare earths, which are essential for tech manufacturing, Muehleisen said it is not in Beijing’s interest to plunge back into an environment of triple-digit tariffs.
It is unclear whether U.S. Treasury Secretary Scott Bessent, who has led U.S.-China trade talks, would meet with any Chinese officials this week in Washington. A Treasury spokesperson declined to comment on Bessent’s bilateral meetings schedule.
GROWTH FORECASTS HOLD UP
Prior to the escalation on Friday’s, IMF Managing Director Kristalina Georgieva had touted the global economy’s ability to withstand multiple shocks, from tariff costs and uncertainty to a slowing U.S. job market, rising debt levels and rapid shifts brought on by AI’s rapid adoption.
In a preview of the IMF’s World Economic Outlook forecasts due on Tuesday, Georgieva said last week that the global GDP growth rate for 2025 would be only slightly less than the 3.3% for 2024. Based on tariff rates that were lower than initially feared – including the U.S.-China duties – the IMF in July raised its 2025 GDP growth forecast by two-tenths of a percentage point to 3.0%.
“What we are seeing is demonstrable resilience in the world,” Georgieva told Reuters in an interview. “But we are also saying it is a time of exceptional uncertainty, and downside risks are still dominating the forecast. So watch it, don’t get too comfortable.”
G7 FOCUS ON RUSSIA
Finance ministers from the Group of Seven industrial democracies are expected to meet on Wednesday to discuss efforts to step up sanctions pressure on Russia that is aimed at ending Moscow’s war against Ukraine.
A British government source said that finance minister Rachel Reeves wanted to ensure joint action with G7 and European Union countries to cut Russia’s energy revenues and access to overseas assets that comply with international law.
Among these options that G7 ministers will discuss is a European Union plan to use Russian frozen sovereign assets to back a loan of 140 billion euros ($162 billion) to Ukraine.
BESSENT’S AGENDA FOR INSTITUTIONS
The U.S. footprint at the meetings will be large, extending from tariff discussions to Bessent’s calls for the IMF and World Bank to pull back from climate and gender issues to focus on their core missions of financial stability and development.
The meetings will be the public debut for Dan Katz, the IMF’s new No. 2 official. Member countries will be watching to see how Katz, a former investment banker who was Bessent’s chief of staff, carries out the U.S. Treasury chief’s agenda, which also calls for stronger IMF criticism of China’s state-led economic policies.
The U.S. Treasury’s market intervention on behalf of Argentina, the IMF’s largest borrower, also will take center stage at the meetings as Argentina’s right-wing libertarian President Javier Milei will join his ally Trump two blocks away at the White House on Tuesday. The move was welcomed by Georgieva to keep Argentina’s market-based reforms on track.
But Muehleisen, the former IMF official, said the Fund risks being pushed by its largest shareholder to enforce Trump’s geopolitical goals – ratcheting up pressure on China and potentially extending more aid to U.S. allies like Argentina without adequate reforms.
“Is it really still a global, multilateral organization, or is it becoming a bit more of an appendage of the U.S. Treasury?” he said. “This will be an interesting debate.”
Reporting by David Lawder; Additional reporting by Andrea Shalal and David Milliken; Editing by Dan Burns and Paul Simao
Our Standards: The Thomson Reuters Trust Principles.
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Washington, D.C
Police search for suspect caught on camera slashing tires in Georgetown
Washington D.C. police are searching for a vandal who was caught on surveillance video slashing the tires of multiple vehicles in a Georgetown alley on Tuesday afternoon. The suspect, who fled the scene on a red bicycle, targeted a Chevy Suburban and a Ford Escape on the 1700 block of 35th Street Northwest.
Washington, D.C
Reflecting Pool being drained – again – as Trump administration tries once more to fix DC landmark – WTOP News
Crews began draining the Lincoln Memorial Reflecting Pool on Sunday, according to Interior Secretary Doug Burgum, for the second time in three months.
(CNN) — Crews began draining the Lincoln Memorial Reflecting Pool on Sunday, according to Interior Secretary Doug Burgum, for the second time in three months.
In an interview released Tuesday with Katie Miller, a conservative podcaster and wife of President Trump’s deputy chief of staff Stephen Miller, Burgum said they started draining the pool as planned after the July Fourth fireworks show, noting some of the fireworks debris was still in the water.
Asked about the schedule for this round of renovations, he gave no specifics beyond a broad overview.
“Drain the water. Clean up the fireworks stuff. Repair the vandalism that was done. Fill it back up again,” Burgum said.
As of Tuesday evening, there was still water in the pool, and it was unclear if it will be drained further. Burgum indicated over the weekend that it may only need to be partially drained.
The move comes after weeks of problems – algae blooms, green-hued water, a chipping bottom and allegations of vandalism – have plagued the iconic landmark, making its woes the subject of a national fixation.
Members of the Trump administration, including President Donald Trump, have said vandals caused damage to the Reflecting Pool by gashing the lining, though they have not provided evidence to support that claim. In late June, the president said the pool would be drained after the July Fourth holiday to fix it.
The administration will use the same contractor, Virginia-based Atlantic Industrial Coatings, for this next round of repairs. Previously, the company landed a no-bid contract worth more than $14 million for their part of the work – sealing the pool and painting the bottom “American Flag- blue.”
Asked about the timeline for his part of the repairs, Eddie Gross, owner of Atlantic Industrial Coatings told CNN that “nothing has been set yet.” He declined to answer questions about his contract and the cost of additional repairs.
The Department of Interior did not respond to questions about the timeline for this round of repairs.
Burgum, in an interview on CNN’s “State of the Union” Sunday, suggested the repairs could happen with the pool only being partially drained. He sought to portray the costs as minor.
“It’s going to be a small number because the majority of the work was related to the labor and the materials for the liner,” Burgum said.
“We’ll use the same company, because they did a fantastic job,” he said.
Burgum also said the government could “absolutely” prove the damage was caused by vandals, and that there are photographs supporting the claim. But he dodged a question about whether those photographs show anyone damaging the pool.
The secretary also denied that Trump having his motorcade drive through the pool mid-renovation in May did any damage to the site.
“No, I was with him when we came that night … We were driving in a Cadillac Escalade. It is one of the presidential fleet of cars,” Burgum said, adding that the vehicle Trump took on the ride was “substantially lighter” than the armored presidential limousine known as “The Beast.”
“The whole base level of this industrial rubber layer was not yet completed, and so there was no damage that night whatsoever,” he said. “That was one of the questions we asked before we even brought the presidential motorcade there, but not a chance.”
The other contractor involved in the project, Greenwater Services, previously told CNN that when the pool is drained it will not affect their system, which is up and running.
Chas Antinone, the president of Greenwater Services, told CNN the company can shut down and then restart the so-called ozone nanobubbler, as necessary.
Companies involved in the renovation have found themselves at the center of national news as Reflecting Pool issues continued.
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Washington, D.C
DC is second riskiest city for driving, Allstate says
D.C. is the second riskiest city for driving, an insurance company report says.
Allstate said it looked at the number of crashes, how often they happen and certain types of behavior behind the wheel.
“On the phones, bike lanes, people on motor scooters having no regard for the law,” one driver told News4. “It is risky, yeah. I’ve seen a lot of close calls.”
The average driver around D.C. goes just about four years in between collisions. Drivers in the least risky city — Brownsville, Texas — go about 15 years in between collisions.
D.C. also got dinged for bad driving — like being on phones a lot — and plenty of nighttime driving, which increases risk.
Allstate analyzed property damage claims from January 2023 through December 2024 to rank cities. Here’s the Top 10:
- Boston
- D.C.
- Baltimore
- Worcester, Mass.
- Springfield, Mass.
- Glendale, Calif.
- Providence
- Sunrise Manor, Nev.
- Los Angeles
- Philadelphia
But local Allstate agent Rudy Alston says D.C. drivers themselves may not deserve the bad rap.
“I think a lot of it isn’t so much from D.C. natives,” he said. “I think it’s a lot of people coming from outside of D.C. — coming from Maryland and Virginia that commute to D.C. — that maybe aren’t as familiar with the traffic laws in D.C. and how congested D.C. is with the influx of pedestrians, Uber drivers, the Door Dash guys on the scooters, the Metrobuses. So, I just think when they get here, they’re just not familiar with it.”
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