The International Monetary Fund has warned that a global trade war could shrink the world economy by 7, which is equivalent to the combined GDP of France and Germany. Concerns are growing over Donald Trump's potential re-election and proposal for a universal tariff of up to 20 on all U.S. imports. The European Union is already preparing for possible retaliatory measures. Deputy Managing Director Gita Gopinath emphasized the potential economic damage from decoupling while stressing the need to rebuild fiscal buffers.