The head of the International Monetary Fund (IMF) has called on countries to “quickly” resolve trade conflicts that threaten global economic development.
IMF Managing Director Kristalina Georgieva noted that the unpredictability arising from US President Donald Trump's aggressive policy of imposing import taxes is forcing businesses to postpone their investment plans and consumers to curb their spending.
“Uncertainty is having a negative impact on business,” she told reporters at a press conference on Thursday as part of the spring meetings of the IMF and World Bank.
Ms Georgieva's comments came just two days after the IMF cut its forecast for global economic growth this year.
The 191-member financial institution, which aims to promote global growth, financial sustainability and poverty reduction, also significantly revised down its forecast for the United States.
According to her data, the probability that the planet's largest economy will face a recession has increased from 25% to approximately 40%.
Ms Georgieva warned that the economic impact of trade conflicts would primarily affect poor countries that lack the resources to compensate for losses.
Since returning to the White House in January, Mr Trump has been aggressively pursuing tariffs against American trading partners.
Specifically, he imposed a 145% tariff on imports from China and 10% on goods from almost all countries, raising U.S. tariffs to levels not seen in more than a century.
But he has repeatedly changed the U.S. course — suddenly suspending or adjusting tariffs — leaving companies confused about his intentions and ultimate goal.
Trump's tariffs were a sharp departure from recent U.S. free trade policies and created uncertainty that sent financial markets into a multi-week slump.
Still, stocks rose on Wednesday after the Trump administration signaled it was willing to cut significant tariffs on Chinese goods.
“There's an opportunity here to make a big deal,” Treasury Secretary Scott Bessent said Wednesday.
Sourse: breakingnews.ie
