IMF Warns U.S. Tariffs Could Undermine Fragile Global Economy
The International Monetary Fund has raised concerns over newly announced U.S. tariff measures, warning that they pose a risk to an already fragile global economic recovery.
IMF Managing Director Kristalina Georgieva said the institution was still evaluating the full macroeconomic impact of the tariffs, which were unveiled by the U.S. government on Wednesday. However, she cautioned that the measures “clearly represent a significant risk” to global growth at a time when economic momentum remains weak.
“It is important to avoid steps that could further harm the world economy,” Georgieva said, urging Washington and its trading partners to seek a constructive resolution to mounting trade tensions.
The IMF plans to publish its formal assessment of the tariffs’ impact in its upcoming World Economic Outlook, set to be released during the IMF and World Bank Spring Meetings later this month.
The warning adds to growing concerns that a resurgence of protectionist policies could disrupt global supply chains, fuel inflationary pressures, and slow recovery in emerging markets. Economists have increasingly flagged trade restrictions as a key downside risk to the global outlook, particularly as central banks navigate a delicate balance between inflation control and economic growth.
Georgieva’s remarks underscore the IMF’s broader stance on free trade, as the institution has consistently cautioned against policies that could increase volatility and undermine investor confidence. Whether the latest tariffs will prompt retaliatory action from U.S. trading partners remains to be seen, but the developments are likely to dominate discussions at upcoming global economic forums.
