In case anyone else was curious, it seems the penalties for being so labelled are enforced through the imposition of tariffs [0].
If the IMF / WTO agree with the Fed's characterization (which is doesn't currently look like will be the case, from what I read in the parent article), then it could have broader impacts, i.e. by the imposition of tariffs by companies which are not currently in a trade war with China.
However, since the US is already levying (heavier) tariffs against China, this is currently being viewed as more of a public / foreign relations move, as it seems unlikely that it will trigger even stronger tariffs.
If the IMF / WTO agree with the Fed's characterization (which is doesn't currently look like will be the case, from what I read in the parent article), then it could have broader impacts, i.e. by the imposition of tariffs by companies which are not currently in a trade war with China.
However, since the US is already levying (heavier) tariffs against China, this is currently being viewed as more of a public / foreign relations move, as it seems unlikely that it will trigger even stronger tariffs.
[0]: https://www.nytimes.com/2019/05/23/us/politics/trump-currenc...