IMF urges US to ‘protect’ gains won under Obamacare

That will include some policies President Donald Trump has said he favors including tax reform, more effective regulation, infrastructure spending, “reprioritizing federal spending,” and “a free, fair, and mutually beneficial trade regime.”

The report however said its discussions with US officials “revealed differences in a range of policy areas and left open questions as to whether the administration’s proposed policy strategies are best suited to achieve their intended purpose.”

– Avoid import restrictions –

Among the other policy prescriptions, the Washington-based fund warned the US against erecting new restrictions on imports, stressing that “open international trade has long supported US growth and job creation.”

The report noted the effort underway to “revitalize” trade relations — including renegotiating the North American Trade Agreement — saying there are gains to be won from updates.

The fund also welcomed “the administration’s commitment to free, fair and mutually beneficial trade.”

Meanwhile, in testimony to Congress on Thursday, Treasury Secretary Steven Mnuchin indicated the administration is pushing the IMF to get other countries to reduce their trade surpluses.

While he did not mention any particular countries, Mnuchin told legislators: “We have pressed the IMF to increase its focus on the need to address global economic imbalances. This will help to improve prospects for US jobs and exports.”

The Trump administration repeatedly singled out Germany and China for their large surpluses, but also has said it wants to reduce the trade deficit with Mexico in the NAFTA talks.

In fact, the IMF for years has stressed the need for countries with large imbalances — surpluses or deficits — to implement policies to reduce them.

In its report on Germany earlier the month, the IMF again urged Berlin to increase domestic spending, allow wages and prices to rise somewhat, and encourage consumption in order to reduce its large surplus.