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IMF Warns New US Tariffs Pose “Significant Risk” to Global Economy

(FILES) In this file photo taken on October 15, 2019, International Monetary Funds (IMF) Managing Director Kristalina Georgieva pauses while speaking about gender equality during the IMF and World Bank Fall Meetings in Washington, DC. - Bulgaria's Kristalina Georgieva, whose tenure as head of the IMF remained uncertain on October 11, 2021 amid allegations of data tampering, is described as a respected economist with a strong background in international finance. (Photo by Olivier Douliery / AFP)

The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that new tariffs imposed by the United States represent a “significant risk” to the global economic outlook.

Speaking on Thursday, Ms. Georgieva urged Washington to collaborate with its trade partners to resolve escalating trade tensions. Her statement marks the first reaction from the IMF leadership since US President Donald Trump’s recent announcement of further tariffs, a move that has intensified concerns about a global trade war potentially leading to recession and increased inflation.

“The tariffs clearly represent a significant risk to the global outlook at a time of sluggish growth,” Ms. Georgieva stated. “It is important to avoid steps that could further harm the world economy.”

She added, “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

The Washington-based IMF had previously forecast global growth to reach 3.3 percent this year, a figure already below the average of 3.7 percent seen in the early 21st century. The issue of US trade tariffs is expected to be a key topic when the IMF releases its updated global economic outlook later this month, coinciding with its Spring Meetings in Washington.

The IMF’s warning follows similar concerns raised by other international bodies and trading partners, with some nations already threatening retaliatory measures against the US tariffs.

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