Bali, Indonesia (CNN Business) The trade war is set to take its toll on the American and Chinese economies in 2019.

The International Monetary Fund on Tuesday cut its growth forecasts for the United States and China, citing the recent waves of tariffs the world's top two economies have imposed on each other.

The more pessimistic forecast comes as the clash between Washington and Beijing threatens to keep escalating and cause damage in other countries.

"When you have the world's two largest economies at odds, that's a situation where everyone suffers," Maurice Obstfeld, the IMF's chief economist, said at a media briefing about the fund's latest World Economic Outlook.

to 2.5% next year from 2.9% this year. They cut the 2019 forecast by 0.2 percentage points because of the trade conflict. Despite healthy momentum in the United States , which received a boost from recent tax cuts , IMF economists now expect growth to slowto 2.5% next year from 2.9% this year. They cut the 2019 forecast by 0.2 percentage points because of the trade conflict.

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