The International Monetary Fund has warned that the escalating China-US trade dispute will jeopardize global growth in 2019.

In a report titled “the impact of US-China trade tensions”, the IMF says tensions have damaged the economies of both countries, reducing overall trade and hurting companies on both sides.

The report says that if trade dispute between China and the US continues, it will “subtract about 0.3 percent of global GDP in the short term”.

It says that “consumers in the US and China are unequivocally the losers from trade tensions”, but “tariff revenue collected has been borne almost entirely by US importers.”

The report also warns that if the tariffs are escalated, consumer goods will become less affordable, harming low-income households.

It also reveals that “the tariffs have reduced trade between the US and China, but the bilateral trade deficit remains broadly unchanged.”