IMF Warns USA Tariffs Threaten Global Economic Stability

IMF Warns US Tariffs Threaten Global Economic Stability

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has voiced concern over the United States’ recent tariff actions, cautioning that they present a “serious threat to the global economic outlook.” She urged the US and its trade partners to engage in constructive dialogue to ease ongoing trade tensions and reduce economic uncertainty.

This marks Georgieva’s first official response following President Donald Trump’s latest round of broad-based tariff increases, which have intensified the ongoing trade conflict. Economists worry the escalating trade measures could push the global economy toward recession and drive up inflation.

“These tariffs come at a time when global economic growth is already weak, making them a significant risk to the broader outlook,” Georgieva noted. She stressed the importance of avoiding policy decisions that could further damage the fragile global economy.

In January, the IMF projected global economic growth to reach 3.3% this year—below the 3.7% average seen during the first two decades of the 21st century. The Fund is set to release an updated forecast later this month during the Spring Meetings in Washington, where the US’s aggressive tariff strategy is expected to be a central topic of discussion.

Earlier this week, President Trump declared a national economic emergency and announced a minimum 10% tariff on imports from all nations, a move that has drawn widespread criticism from economists and international trade bodies.