IMF Warns Trump’s 10% Tariffs May Shake Global Economic Stability——The International Monetary Fund (IMF) has raised alarm over the potential economic impact of the 10% reciprocal tariffs imposed by the United States on the global economy.
Managing Director of the IMF, Kristalina Georgieva is concerned that the policy direction of the US government could pose a serious threat to the already fragile global economy.
The Donald Trump-led administration has imposed sweeping tariffs on several trading partners, citing unfair trade practices, national security concerns, and the need to protect domestic industries. Already, the U.S. has levied broad tariffs, including a 10% tariff on aluminium and 25% on steel imports from countries like Canada, Mexico, and the EU.
In a latest development, President Trump has announced reciprocal tariff on all trading partner countries with some level of taxes on US goods exported into that country. The tariffs are not uniform for all countries but based on the level of taxes imposed on US goods in that country ranging from a baseline of 10% to as high as over 40%.
Kristalina Georgieva says after the initial assessment, it has become apparent that the move is a significant risk to the global economic outlook. This sweeping tariffs come at a time when global economies are grappling with sluggish growth.
Currently global trade tensions remain high, with concerns that protectionist policies could further stifle investment and economic recovery. While the full impact of the tariffs is still being assessed, the IMF has signalled that these measures could exacerbate global economic uncertainty, potentially triggering retaliatory actions from affected trading partners. This could disrupt supply chains, slow down trade flows, and create volatility in financial markets.
“We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy,” a statement released by the Managing Director of the IMF indicated.
This assessment by the IMF has been corroborated by a Ghanaian economist, Dr. Theo Acheampong who believes the development could spark global inflationary pressures. He says given the strength of the US economy and impact on the global economy, such a policy direction will definitely exert serious impact on the world economy.
Meanwhile, the IMF intends to provide a comprehensive analysis in its upcoming World Economic Outlook, set to be released during the IMF/World Bank Spring Meetings later this month.
However, the early warning highlights fears that escalating trade restrictions could worsen economic headwinds and weaken global growth prospects.
Last Updated on April 7, 2025 by Senel Media
