Lagarde has previously described the trade wars as a "self-inflicted wound" and warned that US-China tariffs so far imposed and threatened could trim 0.5 percentage points off global GDP growth next year - an amount $455 billion larger than the entire South African economy.
"We were on the way to a historic deal".
"The bad news is that it is unclear how the USA and China trade talks will end and unless it is resolved, there is a concern that market confidence could be affected further, this is an issue." said Taro Aso, the finance minister of Japan.
Finance ministers and central bank governors were working toward a final communique from the meeting, but were reportedly struggling to find agreement at the start of the two-day meeting.
As companies move out of China in order to avoid United States tariffs, "there's going to be a big economic opportunity for a lot of other countries", he said.
The world's top financial policymakers admitted Sunday that trade tensions had worsened and posed a risk for the global economy, after a G20 meeting that laid bare differences between the United States and other nations.
"People talk about the economic risk of trade wars" however "they should be even more focused on the benefits of having a great trade agreement", Mnuchin said, noting that there's no evidence of the US economy taking a hit from tariffs.
However, he insisted that the current trade relationship between the world's top two economies was "very unbalanced".
China's Huawei signs deal to develop 5G in Russian Federation
The pandas, who could be seen chomping bamboo as Xi and Putin arrived, will living in a specially built enclosure. "Putin is my best friend and a good colleague", Xi said in comments published on the Kremlin's website.
After the Trump administration raised tariffs to up to 25% on $250 billion of imports from China and blacklisted telecommunications giant Huawei, China raised tariffs on rare earth exports to the US and threatened to halt exports altogether.
"However, growth remains low and risks remain tilted to the downside".
Mnuchin's comments came on the sidelines of a meeting of finance ministers of G 20 economies in Fukuoka, Japan, and ahead of the Treasury Secretary's meeting with Yi Gang, the Governor of the People's Bank of China. The countries are unable to find a compromise on Trump's tariffs, with the U.S. arguing for keeping many of them and Beijing insisting that they must come off as part of any trade deal. Those tactics, the USA contends, include hacking into US companies' computers to steal trade secrets, forcing foreign companies to hand over sensitive technology in exchange for access to the Chinese market and unfairly subsidizing Chinese tech firms. "I believe if China is willing to move forward on the terms that we were discussing, we'll have an agreement".
China has blamed the USA for the breakdown and vowed to reciprocate for the increased tariffs in various ways.
He said, "There's no question where we are now, that this is a result of them backtracking on significant commitments", adding, "For whatever reasons they chose to do that, I'll leave to them".
"Clearly there is a slowdown in Europe, there is a slowdown in China, there is a slowdown in other parts", Mnuchin told reporters, adding that he did not think this was "in any way the result of trade tensions at the moment". "There will be winners and losers".
At the meeting of trade and economy ministers in Tsukuba, a government research hub, the officials endorsed a similar set of recommendations, while also issuing a mild call to "handle trade tensions and to foster mutually beneficial trade relations".