Trump's Tariffs: A Looming Threat to Global Economic Stability

U.S. President Donald Trump's new tariffs present a significant risk to the fragile global economy, warns IMF Managing Director Kristalina Georgieva. She urges constructive dialogue to ease trade tensions, as the IMF plans to reassess economic impacts at its April meetings, despite dismissing imminent recession fears.

On Wednesday, U.S. President Donald Trump announced sweeping tariffs that, according to Kristalina Georgieva, Managing Director of the International Monetary Fund, pose a significant threat to the global economy. Georgieva stressed the importance of avoiding actions that could further damage economic growth and urged the U.S. and its trade partners to actively work through tensions.

In her strongest remarks yet regarding the U.S. trade policy, Georgieva noted that the tariffs come at a time of already sluggish global economic growth. She advocated for constructive resolution of trade tensions to mitigate uncertainty, warning that the implications of these tariffs could seriously threaten worldwide economic performance.

The IMF will provide an updated assessment of these tariffs during its upcoming World Economic Outlook meetings. While speaking to Reuters, Georgieva stated that although the new tariffs have heightened uncertainty and lowered confidence, they are not expected to cause an immediate recession, but may slightly lower economic projections.

(With inputs from agencies.)