IMF warns US tariffs pose ‘significant risk’ to global economy

The International Monetary Fund (IMF) on Thursday warned that new US tariffs pose a “significant risk” to the global economy, urging Washington and its trading partners to ease trade tensions amid sluggish global growth.

IMF Managing Director Kristalina Georgieva said the Fund was still assessing the macroeconomic impact of the tariffs announced on Wednesday but cautioned against measures that could exacerbate economic uncertainty.

“It is important to avoid steps that could further harm the world economy,” Georgieva said in a statement. “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

Georgieva did not specify which tariffs were under review, but the US has recently signalled plans to increase duties on key imports, raising concerns about potential retaliatory measures from major trading partners.

The IMF chief said the Fund would publish a full assessment of the tariffs’ effects in its World Economic Outlook, set to be released during the IMF and World Bank Spring Meetings later this month.

The warning comes as global economic growth remains fragile, with concerns over inflation, high interest rates, and geopolitical tensions weighing on financial markets.

Attribution: Amwal Al Ghad English