The IMF forecasts US GDP growth this year of 2.9 per cent, slowing to 2.5 per cent in 2019 - which is 0.2 points slower than the July estimate - and to 1.8 per cent in 2020.
Global economic growth is now expected to reach 3.7% in 2018 and 2019, down from the IMF's previous prediction of 3.9% in July.
The benchmark USA 10-year Treasury yield climbed to its highest since May 2011 on Tuesday.
"In the United States, momentum is still strong as fiscal stimulus continues to increase, but the forecast for 2019 has been revised down due to recently announced trade measures, including the tariffs imposed on $200 billion of US imports from China", IMF report said.
"The global economic recovery has been uneven and inequality has risen, fuelling inward-looking policies and contributing to increased policy uncertainty".
The latest World Economic Outlook Report has predicted a slightly lower growth rate than it made projections in the April 2018 World Economic Outlook for 2019.
"IMF's downgrade just goes to show how the tariff dispute between USA and China is beginning to take its toll on the global economy", said Peter Cardillo, chief market economist at Spartan Capital Securities in NY. Contributions of 200 words or more will be considered for publication.
Among major USA trading partners, Japan and the European Union have won exemptions from the planned US auto tariffs while respective trade negotiations with Washington are underway.
Top officials of government confirmed to The News that the IMF would be formally requested for providing a bailout package in the range of $6 to $8 billion depending upon the ability of Islamabad to convince the Fund management and its board members to jack up quota by 5 to 7 times along with provision of front loading by getting at least $2 billion upfront and the first tranche probably within next 4 to 6 weeks period.
"Japan's medium-term prospects are impeded by unfavorable demographics and a trend decline in the labor force", the report said.
Global trade tensions would also have a bearing on the eurozone's 2018 growth forecast, which was cut to 2 percent from 2.2 percent previously.
The UK economy, meanwhile, is expected to grow 1.4 percent this year and 1.5 percent in 2019 - falling behind nearly all of Europe, with the exception of heavily-indebted Italy.
"Healthy consumer spending and job creation amid supportive monetary policy are expected to continue to provide strong aggregate demand, though at a moderating pace", according to the report.
The three leading economies of the continent, Nigeria, South Africa and Angola were projected "to witness sluggish growth in 2019 and beyond". For the record, the International Monetary Fund has lowered the growth projections for both India and China by 0.4 per cent and 0.32 per cent, respectively, from its annual April's World Economic Outlook.
In a downcast assessment on the global economy, the International Monetary Fund pointed the finger at trade policy tensions as part of its reason for predicting slower global growth.
"We are concerned about the downturn in economic growth", noted Jubilee USA Executive Director Eric LeCompte.