IMF Chief warns that US tariffs pose a substantial risk to the global economy

IMF Chief Warns US Tariffs Pose Significant Risk to Global Economy

Washington, [Date] – International Monetary Fund (IMF) Chief Kristalina Georgieva has raised concerns over the economic impact of new US tariffs, warning that they pose a serious threat to global economic stability.

Key Highlights:

• Significant Risk to Global Economy: Georgieva emphasized that the newly imposed US tariffs represent a substantial risk to the world economy, particularly at a time when global growth remains sluggish.

• Call for Constructive Engagement: She urged Washington and its trading partners to work together to de-escalate trade tensions and reduce uncertainty.

• Impact of US Trade Policies: Her statement comes in response to President Donald Trump's latest round of tariffs, which have heightened concerns over a deepening trade war. Economists fear these actions could fuel inflation and push the global economy toward recession.

• Warning Against Economic Harm: Georgieva stressed the importance of avoiding measures that could further weaken global economic conditions.

• Global Growth Projections: The IMF had previously projected global economic growth at 3.3% for the year, lower than the historical average of 3.7% recorded in the first two decades of the 21st century.

• Upcoming IMF Outlook & Meetings: The Washington-based institution is set to release an updated economic forecast later this month, coinciding with the IMF Spring Meetings, where the US tariff policies are expected to be a central topic of discussion.

Background & Implications:

The escalating trade tensions between the US and its global partners have raised concerns among economists and policymakers. The latest tariffs introduced by the US administration add to an already volatile economic environment, which has been struggling with slowed growth, inflationary pressures, and supply chain disruptions.

The IMF has consistently advocated for open trade and cooperative economic policies to ensure sustainable global growth. With Washington's recent tariff moves, financial markets are closely watching how these trade disputes will unfold and what measures governments may take to mitigate economic risks.

As global leaders prepare to meet in Washington for the upcoming IMF Spring Meetings, discussions will likely focus on strategies to address trade uncertainties and prevent further economic setbacks.