By Emily Sims
Washington DC, April 4:Â Following US President Donald Trump’s announcement of sweeping reciprocal tariffs, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has voiced serious concerns about the potential impact on the global economy. Georgieva described the tariffs as a “significant risk to the global outlook” and urged the United States and its trading partners to de-escalate the situation.
In a statement released Thursday, the IMF quoted Georgieva as saying, “We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”
The IMF chief further stated that the organization plans to release its full assessment in the upcoming World Economic Outlook, scheduled to coincide with the IMF/World Bank Spring Meetings later this month.
Trump’s announcement on Wednesday (local time) declared a national economic emergency and imposed tariffs of at least 10 per cent across all countries, with significantly higher rates for select nations. Some of the more notable tariffs include 26 per cent on India, 49 per cent on Cambodia, 46 per cent on Vietnam, 34 per cent on China, 24 per cent on Japan, and 20 per cent on the European Union. Reports indicate that over 180 countries and regions will be affected by these measures.
Despite widespread criticism and immediate negative reactions in global markets, President Trump remains optimistic about the tariffs’ impact on the US economy. When questioned about the stock market decline following the announcement, Trump asserted, “I think it’s going very well,” and added that the United States will “have six or seven trillion dollars coming into our country.”
He further predicted a boom in the markets and the US economy, claiming that other countries have “taken advantage of us for many, many years” and will now be eager to negotiate deals.
However, the IMF’s stark warning paints a different picture, highlighting the potential for these tariffs to further destabilize an already fragile global economy. With global tensions already high, the coming weeks will be crucial in determining the long-term consequences of President Trump’s trade policy. CNN reported that US stocks tumbled in after-hours trading following Trump’s announcement, and all eyes are now on Asian indices as they open for trading.
