WEB DESK: International Monetary Fund Managing Director Kristalina Georgieva warned that President Donald Trump’s sweeping tariff campaign presented “a significant risk to the global outlook at a time of sluggish growth.”
In a recent statement, International Monetary Fund (IMF) Managing Director Kristalina Georgieva expressed significant concerns regarding President Donald Trump’s expansive tariff campaign, describing it as a notable threat to the global economic outlook during a period of sluggish growth.
Her remarks came following a steep decline in global markets, where the S&P 500 Index experienced its largest drop since June 2020, plummeting by 4.8% amidst fears over the implications of the new trade penalties.
Georgieva emphasized the importance of minimizing actions that could exacerbate challenges for the world economy. “We urge the United States and its trading partners to engage constructively in resolving trade tensions and alleviating uncertainty,” she stated, highlighting the need for diplomatic efforts in international trade.
The IMF typically refrains from openly critiquing its largest shareholder, the United States, outside of its annual assessments of member economies. In a previous evaluation published in June, the IMF cautioned that the U.S. was grappling with excessive deficits and a high debt burden. It also identified concerns related to aggressive trade policies, foreshadowing potential challenges under the Biden administration.
Moreover, in 2022, the IMF advised the UK government, led by Prime Minister Liz Truss, to reconsider significant tax cuts included in its controversial “mini-budget.” As Trump’s tariff strategies develop, both the IMF and the World Bank are advocating against a potential disconnect from the U.S. in light of the president’s transformative approach to international relations.
The spring meetings for the IMF and World Bank are scheduled to be held in Washington later this month, where these discussions are likely to be a focal point.
