IMF Managing Director, Kristalina Georgieva
The International Monetary Fund (IMF) has expressed significant concerns over newly introduced U.S. tariff measures, warning that they could jeopardise an already fragile global economic outlook.
This comes at a time when global economies are grappling with sluggish growth, post-pandemic recovery challenges, and increasing inflationary pressures.
In a statement issued Thursday April 3, 2025, IMF Managing Director Kristalina Georgieva highlighted that the institution is still evaluating the full macroeconomic impact of the tariffs, which were revealed by the U.S. government on Wednesday April 3, 2025.
Though the exact details of the tariffs remain under scrutiny, the IMF’s initial concerns stem from the potential for these measures to exacerbate global trade tensions, especially amidst ongoing challenges in international supply chains.
“It is important to avoid steps that could further harm the world economy,” Georgieva cautioned.
She emphasised the need for cooperation among nations to mitigate the effects of these new tariffs, urging both the United States and its trading partners to work toward a constructive resolution to the escalating trade disputes.
“We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” she added.
The IMF’s warning comes in the wake of rising global protectionism, which has already started to disrupt global supply chains.
The economic institution is particularly concerned about the impact of tariffs on inflation, trade volume, and emerging markets, which have yet to fully recover from the economic setbacks caused by the COVID-19 pandemic.
Georgieva further noted that the IMF’s comprehensive assessment of the tariffs’ impact will be presented in the upcoming World Economic Outlook, which is set to be released during the IMF and World Bank Spring Meetings later this month.
This assessment is expected to offer deeper insights into the potential repercussions of the tariff measures and how they could affect global trade flows and economic recovery.
Meanwhile, economists are increasingly worried that such policies could stifle global growth, increase costs for consumers, and further strain international relations in the trade arena.
MA
Watch the latest edition of BizTech below:
Click here to follow the GhanaWeb Business WhatsApp channel