IMF chief: Too early to assess global impact of US tariffs

The impact of US tariffs on the global economy remains uncertain, as the situation continues to evolve, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Tuesday.

Speaking at the World Government Summit in Dubai, Georgieva described tariffs as an “evolving story,” noting that while some trade policies had been anticipated during the US election campaign, many uncertainties remain.

“… when I think of the impact on the world economy, my answer to you would be today, it’s too early to say.” she remarked.

Despite a series of unprecedented economic shocks, Georgieva highlighted the resilience of the global economy. She also pointed out the challenges in forecasting inflation trends, suggesting that economic slowdowns in certain regions could lead central banks to cut interest rates, which may not necessarily trigger inflation.

Her comments follow US President Donald Trump’s decision on Monday to raise tariffs on steel and aluminum imports to a flat 25 per cent—a move intended to support struggling American industries but one that risks escalating global trade tensions.

Attribution: Reuters