The International Monetary Fund (IMF) has sounded the alarm over the broad new tariffs imposed by U.S. president Donald Trump saying that they represent a “major risk” for a fragile world economy.
Addressing concerns that the “U.S. is entering uncharted territory” over its tariffs, the IMF’s Managing Director Kristalina Georgieva made a sharp call for the U.S. and its trading partners to “cooperate constructively,” insisting further “economic harm must to be avoided at all cost.” IMF Authorities are still assessing the full implications of the tariff measures announced on April 2, but Georgieva highlighted that they are introduced just as global growth falters.
“These tariffs clearly pose a severe risk to the global outlook –and urgency for cooperation over confrontation -, (Getty Images)” she said. “We call on all to less-done trade tension and confidence be resumed.”
The surprise extent of the 15% tariffs has left trade experts stunned, as fears grow over supply chain disruptions and weakening investment.
Georgieva said that a detailed analysis of the fresh trade measures will be presented in the IMF’s coming World Economic Outlook update at the spring meetings from April 21-26 in Washington, D.C.
Even in the midst of tension, Georgieva insisted that a period of rebound is unlikely in the near term, though the IMF is gearing up to lower its global forecast.
As markets adapt and policymakers campaign, the world waits with a hope that diplomacy can temper a possible costly trade war intensification.
