IMF chief: Threat of tariffs imposed by Trump increases global economic uncertainty
The IMF has warned that the tensions generated by Donald Trump’s threat to impose trade tariffs have led to an increase in long-term borrowing costs and will contribute to the pressures facing the global economy in 2025, writes Ziarul Financiar.
IMF chief: Threat of tariffs imposed by Trump increases global economic uncertainty
Speaking to reporters in Washington on Friday, IMF Managing Director Kristalina Georgieva said global economic policy faces “quite a lot of uncertainty” in 2025, particularly around the trade policy of the world’s largest economy.
“This uncertainty is actually reflected globally by the increase in long-term interest rates,” Georgieva said, although she noted that short-term interest rates have fallen.
Donald Trump returns to the White House promising to impose significant tariffs on US imports from trading partners, including a blanket 20% tariff on all goods.
He also threatened to impose 25% tariffs on Canada and Mexico – now the US’s biggest trading partner – and slap an additional 10% tariff on Chinese goods, which could herald the start of a new era of wars. global trade.
US allies are nervously waiting to see if the president-elect intends to immediately impose blanket tariffs upon his inauguration as president on January 20, or if he will delay and take a more balanced approach targeting specific sectors.
In addition to trade policy, Georgieva said there is “major global interest” in the new Trump administration’s broader economic policy choices, including its tax and deregulation agenda.
The impact of trade policy will be felt especially by countries that are “more integrated in the global supply chain”, Georgieva said, and in Asia.
Georgieva provided some insight into the IMF’s upcoming World Economic Outlook for 2025, which will be released next week, indicating that global growth is “relatively stable.”
However, in the big picture, US economic growth is “doing quite a bit better than we expected,” while the EU “is kind of stagnant,” she said.
Source: www.mediafax.ro
