Tariff Turbulence: Global Economy Faces Slowdown in Trump's Trade Tide

The International Monetary Fund predicts a slowdown in global economic output due to U.S. President Donald Trump's imposition of high tariffs on imports. As countries negotiate to alleviate these levies, the impact is felt globally, notably affecting China and leading to expected reductions in U.S. GDP growth.

The International Monetary Fund (IMF) issued a warning that global economic growth will decelerate in the wake of President Donald Trump's sweeping tariffs on imports. The announcement comes as global finance leaders convene in Washington to discuss potential deals with the Trump administration aimed at reducing these economic barriers.

Negotiations are fast-paced, according to White House press secretary Karoline Leavitt, with significant participation from 18 countries. However, a temporary suspension of some of the more onerous tariffs has been placed, giving nations 90 days to seek less stringent taxation. The levies have already begun impacting economies worldwide, including a projected decline in U.S. GDP growth to 1.8% by 2025, as inflationary pressures mount due to higher import costs.

China stands as one of the most affected nations, facing a reduction in growth forecasts following substantial U.S. tariffs, and has retaliated with tariffs of its own. Meanwhile, talks with other trading partners continue in various stages, with some progress noted between the U.S. and Japan and an agreed framework for future discussions between the U.S. and India.

(With inputs from agencies.)