Trump tariff regime poses 'significant risk' to global economy - IMF
By Abigail Townsend
Date: Friday 04 Apr 2025
(Sharecast News) - The International Monetary Fund has warned that Donald Trump's sweeping tariff regime poses a "significant" risk to the global outlook.
In a brief statement, IMF managing director Kristalina Georgieva said the Washington-based organisation was still assessing the full macroeconomic implications of the taxes, which Trump unveiled on Wednesday.
But she warned: "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 US president is to impose a 10% baseline tariff on all goods coming into the US, on top of a previously announced 25% levy on cars, car parts and steel.
A number of countries also had higher rates imposed on them, either because they have large trade deficits with the US or are deemed as being unfriendly to American interests.
A 20% tax was levied on the European Union and 34% among China, among many other countries.
The move sent the price of gold soaring and markets tumbling, on fears that the global economy is now at risk of an all-out trade war.
A number of countries - including the EU and China - have made it clear they will impose their own tariffs in response. Other countries have scrambled to try and secure a deal with Washington before the tariffs come into effect in the next few days.
The UK was one of a handful of countries to have the baseline tariff applied only, which comes into effect on 5 April.
Prime minister Keir Starmer warned on Thursday that "no one wins in a trade war" and said existing trade negotiations with the US would continue.
But retaliatory action has not been ruled out, with the government now consulting on which products could be potentially included.
The IMF is scheduled to provide a full assessment of the tariff regime when it publishes its latest World Economic Outlook later this month.
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