US tariffs causing anxiety but no 'dramatic' economic impact: IMF chief
Business
By
AFP
| Apr 01, 2025
US President Donald Trump's tariff threats are causing "a lot of anxiety," but their global economic impact is not expected to be dramatic, the head of the IMF said Monday.
Since his White House return in January, Trump has embarked on a stop-start rollout of tariffs against top trading partners, and threatened to impose additional levies on Wednesday, a day he has dubbed "liberation day."
In response to the tariff threats, global markets have taken a tumble, and US consumer confidence has plunged, although recent unemployment and inflation data is not yet flashing warning signs for the American economy.
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"There is a lot of anxiety around developments," International Monetary Fund Managing Director Kristalina Georgieva said during a virtual event hosted by Reuters on Monday in response to a question on trade.
"But I would say there is also a silver lining in this process because it is forcing countries to take much more seriously how to build resilience on their own, based on their own policies," she said, noting the recent change in European defense investment.
Georgieva said the Fund may slightly downgrade its global economic forecast for this year of 3.3 percent, adding it does not currently predict a recession.
"We are not seeing dramatic impact" from tariffs, she added.
The IMF has conducted research showing that uncertainty around trade can have a negative impact on the economy and hold back growth.
"The sooner there is more clarity, the better," Georgieva said.