The rise in the deficit comes as U.S. President Donald Trump is looking to conclude trade negotiations with China. Trade talks have already moved past the initial March 1 deadline with the notion that the capital markets have already priced in a deal, resulting in sell-offs this week.

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Earlier this year, the International Monetary Fund lowered its global growth forecast, pointing to ongoing trade wars dampening China’s economic outlook as well as rising interest rates in the United States.

“Higher trade uncertainty will further dampen investment and disrupt global supply chains,” said IMF chief economist Gita Gopinath.

The IMF trimmed its growth expectations to 3.5 percent from 3.7 percent. Global growth outlook for 2020 was also cut to 3.6 percent from 3.7 percent.

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