WASHINGTON: The International Monetary Fund (IMF) has issued a warning that the latest US tariffs could negatively affect global economic growth. IMF Managing Director Kristalina Georgieva urged the United States to reduce trade tensions in order to prevent further instability.
“We are still analyzing the economic impact of the new tariff measures, but they undoubtedly pose a major risk to the global economic outlook, especially amidst weak growth,” Georgieva stated. She called for the US and its trade partners to collaborate constructively to ease the current trade disputes.
This statement marks the IMF’s first public reaction following President Donald Trump’s recent tariff actions, which have intensified a trade war that many fear could lead to a global recession and increase inflation.
Georgieva emphasized the importance of avoiding actions that could further harm the global economy. “We urge the United States and its trade partners to work together to reduce tensions and bring more stability to the global economic landscape,” she added.
In January, the IMF forecasted global growth of 3.3 percent for the year, a figure below the 3.7 percent average growth rate seen in the early 2000s. The IMF’s updated economic forecast is expected to be released later this month, coinciding with the Spring Meetings in Washington, where US trade tariffs will be a key topic of discussion.
