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Economy

International Monetary Fund: U.S. tariffs increase economic uncertainty without posing an imminent recession threat.

April 1, 2025198 ViewsRead Time: 2 minutes
International Monetary Fund: U.S. tariffs increase economic uncertainty without posing an imminent recession threat.
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Kristalina Georgieva, Managing Director of the International Monetary Fund, warned that the comprehensive tariff policy adopted by U.S. President Donald Trump increases economic uncertainty and negatively affects market confidence, despite excluding the possibility of an economic recession in the near term.

This was stated during her participation in the "Reuters Next Newsmaker" forum on Monday, March 31, where she pointed out that the impact of the announced or threatened tariffs by the U.S. administration has not yet reached a "severe impact" on the global economy.

Georgieva explained that the IMF will conduct a slight review of its economic outlook in the upcoming update of the "World Economic Outlook" report, scheduled for release during the spring meetings in Washington in about three weeks, and confirmed that the IMF "does not see signs of an impending economic recession."

It is worth noting that the IMF had raised its global growth forecasts for 2025 to 3.3% in January, up from 3.2% in the previous October report, driven by improved expectations for the U.S. economy, which jumped half a percentage point to 2.7%; however, the expected update in the current April will witness - according to Georgieva - "a limited downward correction" to those estimates.

These statements come as a new set of U.S. tariffs enters into effect on Wednesday, described by Trump as "Liberation Day," including a 25% tax on cars not manufactured in the United States.

The U.S. administration is expected to soon announce plans to impose retaliatory tariffs on countries that impose duties on U.S. imports, a move that could escalate global trade tensions.

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