The head of the International Monetary Fund warned of risks to the world economy because of the rivalry between China and the United States.

President Joe Biden has yet to address a key policy issue involving tariffs on Chinese goods imposed by his predecessor, which are costing American importers billions of dollars.

It's important to think carefully about actions and what retaliatory steps they might entail in, because once you let the genie out of the bottle, it's hard to drive it back in, the head of the International Monetary Fund noted.

Biden's team has struggled for months with various ways to reduce the cost of duties levied on Chinese imports in an effort to suppress inflation.