Trump's Tariff Crusade: Impact and Uncertainty Amid IMF Concerns

IMF Managing Director Kristalina Georgieva expressed concern over U.S. President Donald Trump's tariff strategies, highlighting potential economic uncertainties yet dismissing fears of an imminent recession. Trump’s tariff initiatives against major trading partners have incited investor apprehension despite slightly improved U.S. economic projections for 2025.

The International Monetary Fund (IMF) remains watchful of U.S. President Donald Trump's aggressive tariff policies, as noted by its Managing Director, Kristalina Georgieva. She highlighted these tariffs as sources of business uncertainty and a dent in confidence, though not signaling a looming recession. High-frequency indicators now show a slight weakening in consumer and investor confidence, potentially impacting growth prospects, according to her remarks in a Reuters NEXT Newsmaker interview.

Despite the IMF's slight upward revision in global economic growth for 2025, Georgieva anticipates a minor downward adjustment in the upcoming World Economic Outlook report. Trump faced international tension with tariffs imposed on China, delayed levies on Canada and Mexico, and potential new charges on automobiles. This volatile tariff policy has contributed to a 10% dip in major U.S. stock indexes since mid-February, driven by fears of slowed growth or recession.

Georgieva warns that the ongoing uncertainty of Trump's tariff approach increases economic risks, with clarity being crucial to avoid negative growth impacts. Meanwhile, in her meeting with U.S. Treasury Secretary Scott Bessent, Georgieva reported constructive dialogues around maintaining U.S. commitments to the IMF, emphasizing the mutual benefits of the relationship.

(With inputs from agencies.)