IMF has stated that the tariffs imposed by President Trump are damaging the global economy

The recent announcement by US President Donald Trump to implement additional import tariffs has raised concerns about the impact on the global economy during a period of slow growth.

Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), emphasized the need to steer clear of actions that could worsen the global economic situation. She urged the United States and its trade allies to collaborate positively in order to alleviate tensions.

Georgieva, as reported by Reuters on Friday (4/4/2025), stated that she is still evaluating the macroeconomic impact of the newly announced tariff policy. She emphasized that the policy carries major risks for the current global economic outlook which is experiencing slowing growth.

In a situation of economic uncertainty, Kristalina Georgieva emphasized the importance of avoiding measures that could harm the global economy. The IMF hopes that the United States and its trading partners can work together constructively to resolve trade tensions and reduce uncertainty.

The IMF plans to present an estimate of the risks related to the announced tariffs when they release the latest update of the World Economic Outlook at a meeting that will take place on April 21-26 in Washington, D.C.

Christine Georgieva previously stated that President Trump's insistence on widespread tariffs has created significant uncertainty and undermined confidence. However, she also stated that it is unlikely that this policy will lead to a recession in the near future.

On the other hand, JPMorgan noted that the controversial measures taken by Trump, which have cumulatively increased tariffs by 22%, are considered equivalent to the largest tax increase in the United States since 1968.

JPMorgan has increased its projection of global recession risk to 60%, up from 40% previously. They expressed concerns that the impact of tariffs could be even more severe due to possible tariff retaliation and disruptions in the supply chain.

In addition, President Trump's policy of setting minimum tariffs and reciprocal tariffs for US trading partners is considered a potential turning point for the global economic system. This is a concern because the United States has been considered the main pillar in maintaining the strength and reliability of the global economic system.

Takahide Kiuchi, chief economist at Nomura Research Institute, expressed concern, “Import tariffs implemented by Trump have the potential to disrupt the global free trade order previously pioneered by the United States since the Second World War.” This was stated in a report from Reuters on Thursday (3/4/2025).

An expert predicts that the effects of the US import tariff policy will begin to be felt in the next few months. The impact will be in the form of inflation or an increase in the price of goods, which can then lead to a decrease in demand from consumers. This policy will affect thousands of goods traded by consumers and businesses around the world.