The U.S. economy will grow 1.8% this year, the IMF said in its World Economic Outlook, down .9% from January and a full percentage point from last year's projection. The global institution does not expect the U.S. to dip into a recession, but said the odds now have risen from 25% to 37%.

The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity,” IMF wrote. Rele

The IMF said Tuesday it now believed China's economy will only grow by four percent this year, well below Beijing's official target as it fights a mounting trade war with the United States that threatens to hammer the global economy.